Petoskey, MI 49770 Real Estate Market Report

ZIP Code: 49770
Report Date: May 2026
Market Temperature: COLD
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Cold market indicates weak buyer demand relative to available inventory, typically characterized by declining or flat prices, extended days on market, and elevated inventory levels relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Petoskey, MI, are averaging approximately 6.3%, reflecting a stable but elevated interest rate environment for property owners in this market compared to earlier 2026 fluctuations.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. median sold price is $327,000, which establishes current market value based on recent transactions and suggests sellers should align expectations to completed sales rather than asking prices; the prolonged selling timeline (median days on market is 665) appears to be creating clear pricing friction for sellers.

2. The market trend shows prices are down year-over-year and the market temperature is cold, which together suggest slower sales velocity and that sellers may need to adjust pricing or terms to attract buyers.

3. Rental fundamentals are strengthening: median market rent is $1,495 and rents are up year-over-year, indicating continuing demand for SFR and condo rentals even as sale-side activity softens.

4. Financing and holding-cost pressure are meaningful: interest rate pressure is elevated (current 30-year fixed mortgage rates averaging approximately 6.3%), which may suppress buyer affordability and supports a cautious pricing approach for sellers and investors.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.

Petoskey, MI 49770 Real Estate Market Report

ZIP Code: 49770
Report Date: May 2026
Market Temperature: COLD
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo sales and active listings within the past 90 days.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Cold market indicates weak buyer demand relative to available inventory, typically characterized by declining or flat prices, extended days on market, and elevated inventory levels relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Petoskey, MI, are averaging approximately 6.3%, reflecting a stable but elevated interest rate environment for property owners in this market compared to earlier 2026 fluctuations.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The neighborhood's primary transaction indicator, the median sold price, is 407,000, which — combined with a reported down price year-over-year trend — signals recent weakness in realized values and that sellers may need to align expectations with completed sale outcomes.

2. Median days on market is 889, which suggests slower sales velocity and extended listing lifecycles that may increase carrying costs for sellers and create negotiation leverage for buyers.

3. Median market rent is 1,995, and with rent year-over-year trending up, rental demand appears supportive for owners, indicating opportunities to hold for cashflow or reposition properties for lease rather than sale.

4. Interest rate pressure is reported as elevated with current 30-year fixed mortgage rates averaging 6.3%, which, together with a market temperature labeled as cold, may be contributing to excess supply relative to sales activity and greater sensitivity to pricing among buyers.

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