The latest housing forecast from Realtor.com offers one of the clearest pictures yet of where the 2026 market is heading. For Metro Detroit buyers and sellers, the message is steady improvement with important nuances to understand. With projected increases in inventory, moderated price growth, and slowly improving affordability, both sides of the market will have meaningful opportunities. Below is a breakdown of what the data means for you, whether you are planning to buy, sell, or stay informed about Northville, Novi, South Lyon, Plymouth, and greater Metro Detroit.

1. Overview of Realtor.com as a Market Source

Realtor.com is one of the most trusted national real estate data authorities, drawing on MLS data, economic indicators, and proprietary analytics to produce widely cited housing forecasts. Their annual outlook provides a comprehensive snapshot of national trends, including mortgage rate projections, inventory expectations, and price direction.

For local markets like Northville, Novi, South Lyon, and Plymouth, these reports help set the stage for how broader economic forces may influence buyer activity, seller strategy, and affordability trends. While national data never tells the whole story, Realtor.com remains a respected benchmark, and its insights often align closely with what we experience on the ground here in Metro Detroit.

2. Recent Trends and Market Data Analysis

Realtor.com’s newest forecast projects 4.13 million existing home sales in 2026, a modest 1.7 percent increase that signals slow but steady movement away from the historic lows of the last few years. Their economists expect inventory nationwide to grow by nearly 9 percent, continuing a multi-year trend of improving supply. Even with this growth, inventory is still anticipated to sit about 12 percent below pre-2020 levels, showing that scarcity remains part of the market story.

Mortgage rates are expected to average 6.3 percent in 2026, an improvement from the past two years. For the first time since 2022, the typical mortgage payment is projected to fall below 30 percent of median household income, reaching 29.3 percent. This adjustment is small, but for many Metro Detroit buyers, even one step toward affordability makes a meaningful difference.

Price appreciation is expected to moderate nationally, with projections of 2.2 percent growth. Real price growth, however, may be slightly negative due to inflation running above 3 percent. This means sellers may see continued demand, but buyers gain negotiating strength as the environment shifts closer to balanced conditions.

Locally, this mirrors what we are already seeing. Inventory in Northville and Novi continues to rise slowly year over year, giving buyers more choice without significantly affecting values in desirable neighborhoods. South Lyon and Plymouth remain highly competitive in sought after school zones, though price cuts have become slightly more common at certain price points. For both buyers and sellers, the overall trend is movement toward balance without major volatility.

3. Expert Commentary on Market Predictions

The national forecast suggests a slow but real shift toward a healthier market, and based on what I am seeing daily across Metro Detroit, I agree with that outlook. Affordability will still be the biggest hurdle, especially for first time buyers, but declining mortgage payments and gradually expanding inventory will create better opportunities than we have seen in several years.

For sellers, the days of automatic bidding wars have largely passed unless the home is priced properly and stands out with condition or location. That said, well prepared listings in Northville, Novi, and South Lyon still attract strong activity within the first ten days.

For buyers, especially those moving up or downsizing, this market provides a unique window. You will not face the intense competition of 2021 to 2022, and options are improving. However, waiting for rates to drop dramatically could backfire. A large rate decrease would likely spark competition that pushes prices higher.

Overall, the forecast aligns with what I expect here in Metro Detroit: a market that rewards strategy, preparation, and realistic expectations.

4. Local Market Nuances You Will Not See in National Data

National reports can never fully capture the hyperlocal dynamics that shape our communities. In areas like Northville Hills, Novi’s Lake communities, and South Lyon’s golf course neighborhoods, values are still driven by lifestyle amenities, walkability, and top rated schools. Inventory levels vary dramatically by subdivision and price bracket, creating micro markets within each city.

New construction will continue to play an important role in 2026, especially with builders offering incentives, rate buydowns, and price adjustments. Townhomes and entry level options are expanding, though availability remains tight.

Another nuance is buyer behavior. Metro Detroit buyers are increasingly focused on updated homes and turnkey condition. Properties needing work are receiving fewer showings and often require price adjustments. This is consistent with national trends but more pronounced in our local market.

Sellers who price competitively and make small improvements are still achieving excellent outcomes. Buyers who are flexible with location or features can find value that would have been impossible to secure two or three years ago.

In short, Metro Detroit continues to be a market of opportunities, but the right move varies greatly by neighborhood, price range, and timing.

5. Practical Advice for Both Buyers and Sellers

For Buyers:

• Start with a clear budget and explore rate buydown options, especially in new construction.

• Move quickly on well priced homes, particularly in popular school districts.

• Do not wait for a dramatic rate drop. Affordability is improving now, and inventory is creating opportunities.

For Sellers:

• Price competitively from day one. The first weekend remains the strongest for activity.

• Small improvements such as paint, lighting, or landscaping can provide an immediate return.

• Be open to negotiation. More inventory means buyers expect value and transparency.

Whether you are planning to buy or sell, the 2026 market will reward thoughtful preparation and informed decision-making.

Conclusion

The latest Realtor.com forecast reflects a steady path toward balance in the national housing market, and Metro Detroit is moving in the same direction. With improving inventory, stable prices, and slightly better affordability, both buyers and sellers will find meaningful opportunities in the months ahead. Every neighborhood tells its own story, which is why personalized guidance makes all the difference.

If you would like a tailored market analysis or advice about your specific situation, I am always here to help with clarity, care, and proven local expertise.

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