January 12, 2026 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth, and Metro Detroit

Insights by Jeff Duneske, Northville Real Estate Agent

Mortgage Rates Dip Below 6% and What That Really Means Locally

Mortgage rates briefly dipped to 5.99%, the lowest level seen in nearly 3 years, following a $200 billion mortgage bond purchase tied to Fannie Mae and Freddie Mac. While headlines focus on the number itself, the real story is what this shift changes for buyers and sellers in today’s market.

For buyers with a $3,000 monthly budget, purchasing power has increased by more than $30,000 since mid-2025. That difference is meaningful, especially in Metro Detroit price ranges where small shifts in affordability can expand options or improve negotiation strength.

At the same time, national median pricing remains well within reach for many buyers at today’s rates, reinforcing that affordability pressure has eased compared to the middle of last year.

Buyer Leverage Is Quietly Improving

One of the most important data points often overlooked is market balance. There are currently hundreds of thousands more sellers than buyers nationwide, and that imbalance is giving buyers more leverage than we have seen in recent years.

This does not mean prices are collapsing. Instead, it means:

• Buyers are negotiating more effectively

• Price reductions are becoming more common

• Homes need to be positioned correctly from day one

For sellers, this reinforces the importance of pricing strategy, condition, and preparation, especially as competition increases heading into spring.

Inventory Growth Is Slowing and That Matters

Inventory growth has slowed from 33% year over year at its peak to just under 10% as 2026 begins. While overall supply remains elevated, the pace of new listings is cooling, and inventory is expected to reach a seasonal low early this year.

What this signals locally:

• Well priced homes continue to attract attention

• Overpriced listings face longer market times

• Buyers re entering the market will gradually increase competition

As rates hover near 6%, demand historically improves, which can firm up pricing in markets where inventory growth slows.

Why This Window Deserves Attention

Experts caution that rates near 6% may represent the lower range for the foreseeable future. The recent bond purchase was meaningful but relatively small by historical standards, making further declines less likely without new economic shifts.

For serious buyers, this window offers:

• Improved affordability

• Negotiation leverage

• Less competition than peak spring months

For sellers, it is a reminder that strategy matters more than headlines. Pricing, timing, and presentation are what drive results in a market like this.

What I’m Watching Closely

• Buyer activity as rates stabilize near 6%

• Inventory trends as we approach spring

• How price reductions translate into accepted offers locally

Markets are no longer driven by fear or frenzy. They are being driven by informed decisions, and that is where experience and local insight make the biggest difference.

If you’re thinking about selling, buying, or simply want clarity on how these shifts affect your home or plans, a short conversation now can make the next few months much easier.

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Jeff Duneske, Northville Real Estate Agent - Keller Williams Advantage
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