December 22 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Real Estate Agent

What Today’s Housing Data Means for Metro Detroit Buyers and Sellers

National housing numbers keep shifting, but real estate is still a neighborhood outcome. The latest look at inventory, mortgage trends, and buyer activity shows a market stabilizing rather than sliding, which matters directly for pricing strategy across Northville, Novi, South Lyon, Plymouth, and the surrounding communities.

This is not a one-template market. Sellers succeed when they prepare early, price within current buyer demand, and understand how buyers are behaving. Buyers succeed when they move with clarity rather than emotion.

Inventory Growth Slows and Supports Values

Year-over-year inventory growth has now cooled to 13.54 percent after sitting above 30 percent earlier in the year. Weekly inventory slipped from seven hundred seventy five thousand three hundred thirty nine to seven hundred fifty seven thousand seven hundred seventy six between December twelve and December nineteen, following a nearly identical seasonal pattern to last year.

New listing activity has flattened. Weekly new listings totaled around 38,000, compared to 39,000 a year ago. That remains far below what would be considered a healthy seasonal peak. Limited supply continues to support values.

Price Stability Rewards Sellers Who Launch Correctly

Roughly one-third of homes reduce price in a typical year. In 2025, the rate was closer to 39%, slightly above last year's. Prices are pacing toward a 1.77% annual increase, in line with expectations.

Well-positioned homes capture attention. Overpriced listings tend to sit and eventually adjust.

Mortgage Rates Hold Steady in the Six Percent Range

Mortgage rates in twenty twenty five have stayed between six point twelve and seven point twenty six percent, inside the anticipated window. Spreads have improved almost one-half of a percent this year, which has helped keep most current quotes in the mid-sixes rather than drifting into the sevens.

For buyers, that creates predictability. For sellers, it means more qualified showing activity.

Buyer Activity is Strengthening into the New Year

Purchase application activity has shown sustained improvement over the past nineteen weeks, with multiple positive prints week over week and year over year. Pending sales reflect the same trend, pacing ahead of 2024, 2023, and 2022.

Buyers are writing contracts. Confidence is present. The market continues to function.

Existing Sales Improve While Inventory Tightens

Existing home sales improved by one-half of one percent in November, reaching an annualized pace above 4.1 million. Inventory dipped almost 6% month over month to roughly 1.4 million units. Median pricing continued its growth streak, posting the twenty-ninth straight month of year-over-year gains.

Stable employment and wage growth continue to support the market.

What This Means If You Are Selling

If you are preparing to sell in Northville, Novi, South Lyon, or Plymouth:

• Early preparation supports stronger outcomes

• Pricing aligned with current demand attracts qualified buyers

• Clean presentation reduces negotiation friction

• Homes launched correctly continue to draw activity even in December

Clarity and preparation create leverage.

What This Means If You Are Buying

If you are planning to buy:

• Activity is rising, but there is still breathing room

• Negotiation is possible on listings that miss the mark

• Understanding neighborhood pricing bands matters

• Focus on long-term value instead of headline noise

Purchase applications usually lead sales by thirty to ninety days, and momentum is building.

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Jeff Duneske, Northville Real Estate Agent
Keller Williams Advantage
Call or text: (248) 939 9393
Visit: Duneske.com