December 1, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Real Estate Agent

by Jeff Duneske

Mortgage rates are improving, inventory is stronger than the past two years, and updated loan limits are creating new opportunities as we move toward the new year. For buyers and sellers in Northville, Novi, South Lyon, Plymouth, and across Metro Detroit, these shifts are beginning to reshape the real estate landscape in a meaningful way.

Below is a clear breakdown of what matters most this week and how it may impact your next move.

Mortgage rates are holding near six percent

Rates sitting closer to six percent is a welcome change. After flirting with eight percent not long ago, this improvement is helping buyers regain confidence and giving sellers a larger and more motivated audience.

A few important factors shaping today’s rate environment:

Softer labor data and Federal Reserve policy are helping bring rates down.
The ten year Treasury yield staying near four percent continues to support mortgage rates in the six percent range.
Adjustable rate mortgages may fall below six percent in 2026, which could open additional pathways for buyers who are comfortable with that structure.

For Metro Detroit buyers, this creates more breathing room. For sellers, the combination of better affordability and a wider buyer pool supports stronger offers on well prepared homes.

Mortgage spreads are improving and buyer activity is rising

Mortgage spreads, which measure the gap between the thirty year mortgage rate and the ten year Treasury yield, are finally moving closer to normal. When spreads are elevated, mortgage rates stay artificially high. As spreads settle, rates can drift even lower.

Purchase demand is also showing meaningful strength:

There have now been more than forty consecutive weeks of year over year growth in mortgage purchase applications.
Many of those weeks posted double digit gains.
Ever since rates dipped under the mid six range this summer, demand has consistently outperformed expectations.

Purchase applications typically look thirty to ninety days ahead, which means early 2026 is shaping up to be more active for Metro Detroit buyers and sellers.

Pending sales and inventory remain stronger than previous years

Pending sales continue to outperform the past two years, and that momentum helps set the tone for early 2026. At the same time, inventory is finally climbing to healthier levels.

Current housing inventory is now well above the levels of the last two holiday seasons. This increase gives buyers more choice and encourages sellers to price strategically and prepare their homes well.

Even with higher inventory, demand remains strong enough that well presented homes continue to attract attention and competitive offers.

What this means for Northville, Novi, South Lyon, Plymouth, and Metro Detroit sellers

If you are thinking about selling in the first quarter of 2026, you are stepping into a market with:

Better affordability for buyers
Stronger purchase demand
More inventory, which encourages realistic pricing
A healthier, more stable market overall

The homes that will win early in the year are the ones that are well prepared, well positioned, and priced with purpose. A thoughtful plan now can help you step confidently into the market when buyer activity picks up after the holidays.

What this means for Metro Detroit buyers

If you are planning a move in Northville, Novi, South Lyon, Plymouth, or the surrounding communities, this is one of the most balanced moments we have seen in years.

Buyers now have:

More homes to choose from
Slightly lower payments compared to earlier this year
More realistic pricing among sellers
More time to make decisions without the extreme pressure of recent markets

This combination makes the next several months a promising window to step in with clarity and confidence.

Your Metro Detroit real estate resource

If you want a clear plan for buying or selling in the coming weeks, I am here to guide you with accurate data, steady communication, and a strategy that fits your goals. A quick conversation now can help you enter the new year one step ahead.

Explore More Market Insights

Stay up to date on listings, trends, and local expertise from Jeff Duneske Real Estate:

The Jeff Duneske Real Estate Five Star Realtor Network

Looking for trusted real estate expertise across Metro Detroit?
Explore more local insights from Jeff Duneske Real Estate, one of Southeast Michigan’s top reviewed Realtors, consistently recognized for five star service and proven results.

Discover why so many clients trust
Jeff Duneske, Metro Detroit’s Top Reviewed Realtor
to guide their next move with confidence, clarity, and care.

Metro Detroit | Northville | Novi | South Lyon | Plymouth

Each post highlights Jeff’s deep local expertise, market insight, and commitment to helping good people move forward in life through real estate.

Jeff Duneske, Northville Realtor® – Keller Williams Advantage
📱 Call or text: (248) 939 9393
🌐 Visit: Duneske.com