January 14, 2026 | Metro Detroit Real Estate Market Update - Insights by Jeff Duneske, Northville Real Estate Agent

January 14, 2026 | Metro Detroit Real Estate Market Update

Insights by Jeff Duneske, Northville Real Estate Agent

Understanding today’s housing market requires looking beyond headlines and focusing on what the data is actually telling us. The latest national reports reveal important shifts that directly influence buyers and sellers across Northville, Novi, South Lyon, Plymouth, Brighton, and Metro Detroit.

Inflation Pressures Are Moderating, But Not Gone

The Producer Price Index for November increased 0.2%, bringing the year over year increase to 3.0%. Most of the monthly rise came from energy costs, particularly gasoline, while service prices remained flat.

Why this matters locally:
Cooling inflation helps stabilize mortgage rates, but energy-driven volatility can still impact consumer confidence. Buyers are watching rates closely, and sellers need pricing strategies grounded in real demand, not emotion.

New Home Sales Continue to Absorb Demand

New home sales in October ran at an annual pace of 737,000, up 18.7% year over year, with inventory holding at a 7.9-month supply. Median new construction pricing declined to $392,300, while average prices increased slightly due to higher-end builds.

Local takeaway:
Builder incentives remain a major driver of activity. New construction continues to relieve pressure on resale inventory, especially in price-sensitive segments of the market.

A Major Shift in Mortgage Rate Reality

For the first time since the pandemic, the share of homeowners with mortgage rates above 6% (21.2%) now exceeds those with rates below 3% (20.0%).

This marks a clear turning point in the rate lock-in effect that has constrained inventory for years.

What this means for sellers:
More homeowners are adjusting to the realities of higher rates. Life events still drive moves, and we are beginning to see gradual increases in resale listings as resistance softens.

What this means for buyers:
Rates have eased into the low 6% range, opening the door for more purchase activity. Buyers who stay focused on a monthly payment strategy rather than headline rates are finding opportunities.

Mortgage Applications Surge as Rates Dip

Mortgage applications jumped 28.5% week over week, with refinance activity up 40% and purchase applications up 16%. The average 30-year fixed rate declined to 6.18%.

Why this matters:
Lower rates quickly translate into action. This surge confirms that buyers are waiting and ready to act when conditions improve, even modestly.

What I’m Watching Next

• Whether mortgage rates continue trending lower into early spring

• How quickly sellers respond to the shifting rate environment

• Inventory growth in move up and downsizing segments

• Buyer urgency as competition re-enters select price points

Bottom Line

The market is not frozen. It is recalibrating.

Buyers and sellers who understand these shifts and adjust strategy accordingly are the ones making confident, well-timed decisions. This is not a market for guessing. It is a market for clarity, preparation, and strong guidance.

If you are considering buying, selling, or simply want to understand how these trends impact your specific situation in Metro Detroit, I am always here as a local resource.

About Jeff Duneske

Jeff Duneske is a top-tier real estate professional serving Northville and the surrounding Metro Detroit communities. With more than 25 years of experience and over 1,300 homes sold, Jeff is known for delivering results through integrity, service, and deep local market knowledge. His approach is steady, strategic, and always centered on helping clients make confident, well-informed decisions.

Jeff Duneske, Northville Real Estate Agent
📞 Call or text: (248) 939 9393
🌐 Visit: https://duneske.com