One of Michigan's best-kept secrets is finally out.

Petoskey is a picture-perfect lakefront city with sailing, skiing and sunsets, earning comparisons to some of America's most exclusive enclaves.

Perched on the shores of Lake Michigan, it has become one of the hottest new luxury real estate destinations, with more than half of all homes on the market priced at least $1 million.  

Even more striking, Petoskey is now among the top 'luxury' real estate markets in the US, joining vacation hubs like Nantucket, Martha's Vineyard, Jackson Hole and Napa Valley.

According to a Realtor.com housing report, the median listing price in the Petoskey area now sits at about $1.11 million, while 53 percent of all active listings exceed the million-dollar mark.

The area's top ten percent of homes begin around $3.5 million, while the most exclusive properties approach $8 million.

But unlike coastal hotspots where luxury homes have dominated for generations, Petoskey's rise has been comparatively quiet.

For some locals, the spike in popularity came as somewhat of a surprise, with one Reddit user writing, 'I loved living in Petoskey. Some of the best and freest years of my life. I could never afford to do it now.'

'My son played an away game in Petoskey,' another Reddit user added. 'The place is freaking beautiful. I can completely understand why people want to live there.' 

Situated about four hours north of Detroit, the city of roughly 6,000 residents has long attracted summer visitors thanks to its historic downtown, marina, beaches and famous 'Petoskey stones' - fossilized coral unique to the region that wash ashore along Lake Michigan.

The Bay View community alone has more than 400 homes on the National Register of Historic Places.

The destination also offers something few luxury markets can match: boating in the summer and skiing in the winter.

Within a short drive are Boyne Mountain, Nub's Nob and The Highlands, while hiking trails, golf courses, inland lakes and miles of shoreline keep visitors busy year-round.

Locals report that a flood of remote workers descended on Petoskey during the pandemic, sending home prices soaring.

Since then, values have more than tripled, with the median list price rocketing from just $349,950 in March 2020 to the more than $1.11 million it is today. 

On Zillow, sprawling five-bedroom, seven-bathroom estates are getting snatched up - one with a boathouse, a gazebo over the water and its own guest cabin listed for an eye-watering $13.6 million.

Another listing, a rustic, log cabin home with a stunning two-story fireplace, is available for almost $8 million. There are even listings just below the $1 million mark that boast lakefront views, fireplaces and other ritzy amenities. 

Even if homes cost more than they did pre-COVID, Detroit-based broker Erica Collica Swink confirms that Petoskey has something that other 'luxury' real estate markets lost: value. 

'You're still buying a premium lifestyle, but your dollar goes much further than it would in places like Nantucket, Jackson Hole or the Hamptons,' Swink told the Daily Mail. 

'Buyers can own an exceptional waterfront property, enjoy world-class boating, skiing, golf and restaurants, without paying the ultra-prime prices those markets command,' she added.

Another top luxury real estate market, Nantucket, has a median listing price that exceeds a whopping $4 million - and more than 99 percent of its listings top $1 million. 

In the Martha's Vineyard community of Vineyard Haven, homes now have a median listing price of $2.4 million - and more than 90 percent of listings surpass $1 million. 

As a result, Petoskey offers buyers access to Great Lakes waterfront living at a significantly lower price point. Not only that, but Swink adds that it's a convenient option for those looking to splurge on a second home.

'Between Pellston Regional Airport and nearby general aviation airports like Harbor Springs, it's not unusual for second-home owners to fly in for a long weekend and be on the golf course or out on the lake within an hour of landing,' Swink said. 

'That convenience has absolutely helped fuel demand from out-of-state buyers,' she added.