Discover the Petoskey, MI Real Estate Market: Expert Tips & Trends

Petoskey

Petoskey, Michigan is a charming resort town perched on the shores of Lake Michigan’s Little Traverse Bay. Known for its breathtaking sunsets, historic downtown, and vibrant arts and culture, Petoskey offers a unique blend of natural beauty and small-town sophistication. The community features top-rated schools, excellent healthcare, and four-season recreation including skiing, boating, hiking, and golf.

Residents enjoy walkable neighborhoods, boutique shopping, award-winning dining, and access to picturesque parks and trails. Whether you’re searching for a lakefront estate, a cozy cottage, or a luxury condo, Petoskey provides an exceptional quality of life for families, retirees, and investors alike.

Real Estate Statistics

Average Price	$1.3M
Lowest Price	$52K
Highest Price	$14M
Total Listings	195
Avg. Days On Market	92
Avg. Price/SQFT	$399

Property Types (active listings)

Browse Petoskey Real Estate Listings

• All Listings
• Under $100,000
• $100,000 - $200,000
• $200,000 - $300,000
• $300,000 - $400,000
• $400,000 - $500,000
• $500,000 - $600,000
• $600,000 - $700,000
• $700,000 - $800,000
• $800,000 - $900,000
• $900,000 - $1,000,000
• Over $1,000,000

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Bathrooms

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$13,995,000

850 W Bear River Road, Petoskey

5 Beds 7 Baths 14,636 SqFt Residential MLS® # 475791

$11,465,000

6166 Lake Grove Road, Petoskey

5 Beds 7 Baths 5,106 SqFt Residential MLS® # 476996

$8,575,000

6166 Lake Grove Road, Petoskey

4 Beds 6 Baths 4,706 SqFt Residential MLS® # 476997

$5,199,000

4048 Cedar Bluff Drive, Petoskey

0 Beds 11 Baths 29,086 SqFt Commercial MLS® # 475840

$4,190,000

4650 Sunset View Lane, Petoskey

5 Beds 8 Baths 6,015 SqFt Residential MLS® # 476049

$4,190,000

4688 Sunset View Lane, Petoskey

5 Beds 8 Baths 6,015 SqFt Residential MLS® # 476048

$3,900,000

Tbd Division Road, Petoskey

0 Beds 0 Baths 0 SqFt Land MLS® # 477907

$3,695,000

↑ $145,000

3575 Charlevoix Avenue 3494 Aqua View Dr Unit A, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473911

$3,595,000

↑ $245,000

3575 Charlevoix Avenue 3448 Aqua View Dr Unit A, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473913

$3,595,000

↑ $145,000

3575 Charlevoix Avenue 3476 Aqua View Dr Unit A, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473912

$3,500,000

1701 Standish Avenue, Petoskey

0 Beds 2 Baths 64,087 SqFt Commercial MLS® # 466906

$3,495,000

↑ $145,000

3575 Charlevoix Avenue 3386 Aqua View Dr Unit A, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 474292

$3,495,000

↑ $145,000

3575 Charlevoix Avenue 3476 Aqua View Dr Unit C, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473919

$3,495,000

↑ $45,000

3575 Charlevoix Avenue 3494 Aqua View Dr Unit C, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473917

$3,495,000

↑ $145,000

3575 Charlevoix Avenue 3406 Aqua View Dr Unit A, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473915

$3,495,000

↑ $145,000

3575 Charlevoix Avenue 3428 Aqua View Dr Unit A, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473914

$3,395,000

↑ $145,000

3575 Charlevoix Avenue 3476 Aqua View Dr Unit B, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473918

$3,395,000

↑ $45,000

3575 Charlevoix Avenue 3494 Aqua View Dr Unit B, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473916

$3,295,000

↑ $45,000

3575 Charlevoix Avenue 3386 Aqua View Dr Unit C, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 474294

$3,295,000

↑ $45,000

3575 Charlevoix Avenue 3406 Aqua View Dr Unit C, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473926

$3,295,000

↑ $45,000

3575 Charlevoix Avenue 3428 Aqua View Dr Unit C, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473924

$3,295,000

↑ $45,000

3575 Charlevoix Avenue 3448 Aqua View Dr Unit C, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473922

$3,195,000

↑ $45,000

3575 Charlevoix Avenue 3386 Aqua View Dr Unit B, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 474293

$3,195,000

↑ $45,000

3575 Charlevoix Avenue 3406 Aqua View Dr Unit B, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473925

$3,195,000

↑ $45,000

3575 Charlevoix Avenue 3428 Aqua View Dr Unit B, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473923

$3,195,000

↑ $45,000

3575 Charlevoix Avenue 3448 Aqua View Dr Unit B, Petoskey

6 Beds 8 Baths 5,586 SqFt Residential MLS® # 473921

$2,995,000

3575 Charlevoix Avenue 3443 Aqua View Dr Unit A, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473929

$2,945,000

3575 Charlevoix Avenue 3471 Aqua View Dr Unit C, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473928

$2,895,000

3575 Charlevoix Avenue 3393 Aqua View Dr Unit A, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473936

$2,895,000

3575 Charlevoix Avenue 3419 Aqua View Dr Unit A, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473932

$2,895,000

3575 Charlevoix Avenue 3443 Aqua View Dr Unit B, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473930

$2,895,000

3575 Charlevoix Avenue 3471 Aqua View Dr Unit B, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473927

$2,845,000

3575 Charlevoix Avenue 3393 Aqua View Dr Unit C, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473938

$2,845,000

3575 Charlevoix Avenue 3419 Aqua View Dr Unit C, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473935

$2,845,000

3575 Charlevoix Avenue 3443 Aqua View Dr Unit C, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473931

$2,795,000

3575 Charlevoix Avenue 3393 Aqua View Dr Unit B, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473937

$2,795,000

3575 Charlevoix Avenue 3419 Aqua View Dr Unit B, Petoskey

3 Beds 4 Baths 5,078 SqFt Residential MLS® # 473934

$2,790,000

↓ $310,000

641 Arrowhead Shores Drive, Petoskey

7 Beds 7 Baths 9,000 SqFt Residential MLS® # 477012

$2,500,000

624 Michigan Street 524 State Street & 138 E Sheridan, Petoskey

0 Beds 0 Baths 8,496 SqFt Multi-Family MLS® # 477583

$2,500,000

613 E Mitchell Street, Petoskey

4 Beds 4 Baths 4,346 SqFt Residential MLS® # 477007

$2,425,000

7341 Upper Bayshore Road, Petoskey

0 Beds 0 Baths 0 SqFt Land MLS® # 473770

New

$2,200,000

4852 Longman Lane, Petoskey

2 Beds 2 Baths 1,130 SqFt Residential MLS® # 477990

$2,150,000

6024 Lake Grove Road, Petoskey

3 Beds 2 Baths 1,400 SqFt Residential MLS® # 477847

$2,100,000

1327 N Us 31, Petoskey

0 Beds 2 Baths 5,120 SqFt Commercial MLS® # 476474

$2,000,000

↓ $500,000

1515 Atkins Road, Petoskey

0 Beds 0 Baths 0 SqFt Residential MLS® # 476058

$1,950,000

604 Bay Street, Petoskey

6 Beds 4 Baths 5,653 SqFt Residential MLS® # 477825

$1,850,000

321 E Lake Street, Petoskey

0 Beds 4 Baths 7,958 SqFt Commercial MLS® # 477427

$1,800,000

2376 N Us 31 17, Petoskey

0 Beds 3 Baths 6,300 SqFt Commercial MLS® # 477449

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Petoskey, MI Real Estate Market Trends + Expert Guide + 25 Must-Know Facts

Introduction

Petoskey, MI is a northern Michigan gem nestled on the shores of Lake Michigan's Little Traverse Bay. Known for its breathtaking sunsets, charming downtown, historic homes, and access to world-class outdoor recreation, Petoskey continues to attract homebuyers, investors, and vacationers alike.

Whether you're a retiree seeking tranquility, a family craving excellent schools and safety, or an investor looking to capitalize on rising property values, Petoskey real estate offers compelling opportunities.

In this comprehensive guide, we’ll unpack the essential facts, market data, neighborhood insights, and expert tips to help you make informed real estate decisions in Petoskey, MI.

Why Buy in Petoskey, MI?

Location and Lifestyle

Petoskey blends small-town appeal with upscale amenities. With views of Little Traverse Bay, walkable streets lined with boutiques, cafes, and art galleries, and four-season recreation from skiing to sailing, it’s easy to see why this town is such a sought-after destination. Whether you're living full-time or part-time, the lifestyle here is pure Northern Michigan magic.

Economic Stability

Petoskey is more than just a vacation hotspot — it's a stable, growing community with a diverse local economy. Tourism, healthcare, education, and retail contribute to a balanced employment base, making the real estate market more resilient to national trends. The area benefits from steady demand for both primary residences and vacation homes.

Quality of Life

Petoskey boasts top-rated schools, state-of-the-art healthcare (McLaren Northern Michigan is a regional leader), low crime rates, and abundant nature. Residents enjoy access to biking and walking trails, golf courses, ski resorts, and sandy beaches. In short, life in Petoskey offers a little bit of everything — with a side of serenity.

Check out this video for a look at the Petoskey community

Types of Properties Available

From cozy cottages to luxurious lakefront estates, the Petoskey real estate market offers a wide range of property types.

Single-Family Homes

Traditional homes dominate Petoskey's residential landscape. Prices typically range from $300,000 to $800,000, depending on size, location, and condition. Many homes are nestled in wooded lots or quiet neighborhoods, perfect for year-round living.

Condominiums and Townhomes

Condominiums offer a low-maintenance option for buyers wanting to live in or near downtown. These units often include HOA amenities such as snow removal, lawn care, and shared recreational spaces. Prices range from $250,000 to $600,000.

Lakefront and Waterfront Properties

Lake Michigan and Walloon Lake draw buyers eager for waterfront access. Lakefront homes in Petoskey are some of the area's most premium properties, with values ranging from $800,000 to well over $3 million depending on size, privacy, and shoreline quality.

Historic Homes

Downtown and Bay View feature charming turn-of-the-century homes with historic architecture. These properties are rich in character, often updated with modern conveniences while retaining their timeless appeal.

New Developments

New construction is limited but growing, particularly in areas just outside of the city. Custom homes with modern layouts, energy efficiency, and high-end finishes are being built in communities like Forest Ridge and Resort Township.

Top Neighborhoods in Petoskey

Each neighborhood in Petoskey has its own unique flavor. Here's a look at some of the most desirable areas.

Downtown Petoskey

Historic charm, vibrant culture, and walkability define this bustling neighborhood. Residents enjoy proximity to restaurants, marinas, and Mitchell Street shopping. It's ideal for those who want to live in the heart of the action.

Bay View

Bay View is a unique, historic community founded in 1875 as part of the Methodist Camp Meeting Movement. It offers seasonal Victorian cottages, art performances, and a tight-knit atmosphere steeped in tradition.

Forest Ridge

Perfect for families, Forest Ridge offers newer homes, wooded lots, and proximity to schools. It’s quiet, safe, and close to recreational trails.

Resort Township

This area encompasses rolling hills, golf courses, and access to Bay Harbor. It includes gated communities with upscale homes and lake views.

The Market Snapshot

Petoskey’s real estate market has seen steady growth over the past decade. While not as volatile as urban hubs, this stability makes it especially attractive for long-term homeowners and savvy investors alike.

Home Values Over the Last 5 Years

Between 2019 and 2024, home values in Petoskey have appreciated by nearly 38%, according to local MLS data. During this time, the median home price rose from approximately $280,000 to $387,000. Lakefront and view-oriented homes appreciate faster, sometimes surpassing 8% annual growth.

Inventory & Demand

Petoskey is currently a seller’s market, with homes spending an average of just 24 days on the market. Inventory remains low, particularly for desirable lakefront and downtown properties. The demand is strongest for move-in-ready homes priced under $600,000.

Buyers should be prepared to act quickly and make competitive offers — especially in spring and summer.

Seasonal Trends

• Spring–Summer: Peak listing and buying season. Inventory is highest, but so is buyer competition.

• Fall: Slower pace, but savvy buyers can find deals.

• Winter: Inventory drops, but so does competition. Great time for serious buyers to negotiate.

Investment Opportunities

Petoskey offers more than just a lovely place to live — it’s a market ripe with investment potential.

Vacation Rentals

Petoskey’s popularity as a year-round vacation destination — thanks to skiing, golf, the waterfront, and festivals — creates a strong short-term rental market. Properties near downtown or Lake Michigan can earn $30,000–$80,000 annually in rental income.

Pro Tip: NorthernMichiganEscapes.com offers property management for vacation rentals, helping you maximize your investment without the hassle.

Flipping Homes

Buyers with renovation experience can find older homes in Petoskey ripe for flipping. Many properties in walkable neighborhoods like downtown or Mitchell Street can be revitalized with modern kitchens, updated baths, and curb appeal — then sold at a premium.

Long-Term Leasing

Petoskey also has a solid market for long-term renters, especially professionals working in healthcare and education. Monthly rents range from $1,500 for condos to $2,800+ for homes, depending on size and location.

Working With Local Realtors

Choosing a Petoskey-based expert is crucial. That’s where Brook Walsh comes in — with unmatched local insight, data-backed strategies, and years of experience in both traditional real estate and vacation rental investing.

Choosing the Right Agent

Look for:

• Deep local knowledge

• Proven negotiation skills

• Expertise in both primary and investment properties

• Connections with inspectors, lenders, and contractors

Brook Walsh brings all of this — plus personalized service that national firms can’t match.

Buyer Services

Buyers working with BrookWalsh.com benefit from:

• Tailored property alerts

• Off-market listing access

• Contract negotiation support

• Coordination of inspections and financing

Seller Services

Selling with Brook Walsh means:

• Professional photography and videography

• SEO-optimized listings

• Targeted marketing campaigns

• Staging and pricing guidance

Mortgage and Financing in Petoskey

Financing in northern Michigan isn’t one-size-fits-all. You’ll want to work with local lenders familiar with seasonal properties and second homes.

First-Time Buyer Support

First-time buyers can explore FHA loans, VA loans, and local grants. Petoskey also has down payment assistance programs for qualifying buyers.

Pre-Approval Process

Getting pre-approved is essential before touring homes. This not only sets your budget but gives you a competitive edge in multiple-offer situations. Local banks like First Community Bank and Honor Credit Union offer personalized service and competitive rates.

Local Amenities & Attractions

Dining and Shopping

Downtown Petoskey is a shopper's paradise. Find everything from boutique clothing stores and gift shops to specialty grocers and wine merchants. Must-visit spots include:

• Chandler’s: An upscale wine bar and restaurant

• American Spoon Café: Celebrated for local preserves and elevated fare

• McLean & Eakin Booksellers: A beloved indie bookstore

Outdoor Activities

Nature lovers will feel right at home. Highlights include:

• Petoskey State Park: Perfect for beach days and hiking dunes

• Nub’s Nob and Boyne Highlands: Top-tier skiing and snowboarding

• Little Traverse Wheelway: A scenic 26-mile bike trail connecting Petoskey to Charlevoix and Harbor Springs

Arts & Culture

The area’s cultural heartbeat thrives year-round:

• Crooked Tree Arts Center: Offers galleries, exhibits, and art classes

• Bay View Association: A National Historic Landmark district with summer concerts, lectures, and theater

• Festival on the Bay: Annual August event with music, food, and waterfront activities

Building a Custom Home

Prefer to design your dream home from the ground up?

Petoskey offers limited but available parcels of buildable land, often just outside the city in Resort Township or Bear Creek. Be sure to consult with local zoning boards and work with experienced builders who know the terrain and seasonal building restrictions.

Relocating to Petoskey

Whether you're coming from another part of Michigan or relocating from out of state, moving to Petoskey is a rewarding shift in lifestyle.

Moving with a Family

Families will find:

• Top-rated Petoskey Public Schools

• Access to youth sports leagues

• Local parks and bike trails

• Family-friendly community events

Retiring in Petoskey

Retirees love Petoskey for:

• Easy access to top-notch healthcare

• Cultural amenities like the Bay View Association

• Outdoor activities tailored for all seasons

• Low crime and a slower pace of life

Frequently Asked Questions

Q. Is Petoskey, MI a good place to invest in real estate?

A. Absolutely. Petoskey’s real estate market is bolstered by its status as a four-season destination. With steady appreciation, low inventory, and strong demand for both primary and vacation homes, the area consistently proves itself as a solid long-term investment.

Q. What is the average home price in Petoskey?

A. As of 2024, the median home price in Petoskey is approximately $387,000. Lakefront and luxury properties command higher prices, while condos and historic cottages are available at lower entry points.

Q. Are there luxury homes in Petoskey?

A. Yes — from private estates overlooking Lake Michigan to custom-built homes in gated communities like Bay Harbor and Resort Township. High-end buyers will find no shortage of premium options with sweeping views and refined finishes.

Q. What are property taxes like in Petoskey?

A. Property taxes vary by location, but the average effective property tax rate in Emmet County is around 1.45%. Lakefront homes and vacation properties may incur slightly higher taxes due to assessed value.

Q. Is Petoskey pet-friendly?

A. Definitely. Petoskey features numerous walking trails, parks, and pet-friendly beaches. Many vacation rentals and condo associations also welcome pets, and there are several veterinary clinics and grooming services in town.

Q. Can I find lakefront homes under $1 million?

A. Yes, though competition is strong. Homes with smaller frontage or located just off the water may come in under $1M. Act quickly, as these listings tend to move fast, especially in peak season.

Final Thoughts

Petoskey, MI is more than just a beautiful lakeside town—it’s a place where quality of life, investment potential, and natural beauty intersect. Whether you’re relocating, buying a second home, or investing in a vacation rental, Petoskey offers a well-rounded, rewarding real estate experience.

Ready to take the next step? Brook Walsh is your trusted local expert with the insight and connections to help you find the perfect property. Whether you’re buying or selling, BrookWalsh.com and Northern Michigan Escapes are your go-to resources for success in Northern Michigan real estate.

Explore current listings
Request a personalized home search
Inquire about vacation rental income projections

Your dream home—or next great investment—awaits in Petoskey.