October 16, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit

Overview of Today’s Market Headlines (Moody’s Analytics, NAHB, MBA)

Today’s market insights come from three trusted national sources: Moody’s Analytics, NAHB Eye on Housing, and the Mortgage Bankers Association (MBA)—each offering a snapshot of where the housing market is headed next.

Moody’s Chief Economist Mark Zandi projects that while U.S. home prices will rise 23.5% by 2035, affordability challenges will keep real (inflation-adjusted) gains flat. Meanwhile, builders continue to proceed cautiously, with single-family permits down 7.1% year over year nationwide. On the mortgage front, the MBA reports applications dipped slightly as the 30-year fixed rate settled at 6.42%, signaling a period of stabilization and patient optimism ahead.

Recent Trends and Market Data Analysis

Moody’s long-term outlook calls for steady, not spectacular, growth. Zandi predicts the market will “stay frozen for several more years” as incomes catch up to elevated prices. For buyers, that means more time for affordability to improve; for sellers, it means pricing and presentation will matter more than ever.

Regionally, the **Midwest and Northeast—including Metro Detroit—**are expected to show greater price stability than the South and West, where new construction is easing supply pressures. Locally, we’re already seeing signs of this balance: homes that are well-priced and move-in ready continue to attract strong interest, while over-priced listings are sitting longer.

The NAHB’s latest data backs this up: single-family permits are down nationally, but the Midwest is up +1.0%, showing our region’s continued housing demand resilience. Builders in Metro Detroit are taking a measured approach, focusing on quality projects over volume—especially in established communities like Northville, Novi, and South Lyon, where available land remains limited.

Expert Commentary on Market Predictions

While national headlines can sound slow or even flat, local context matters. A “sideways” national market doesn’t mean stagnation everywhere—it means a reset toward equilibrium.

As affordability gradually returns, expect to see more first-time buyers re-entering the market and move-up buyers taking advantage of stabilized rates.

Here’s the key: with mortgage rates expected to hover near 6.0% for the long term, today’s buyers should plan strategically, not wait for unrealistic drops. Sellers, meanwhile, will benefit from steady demand and limited local inventory—a combination that continues to support strong values across our region.

Local Market Nuances and Considerations

Here in Northville, Novi, South Lyon, and Plymouth, the story remains one of measured movement and micro-market opportunities:

• Northville & Novi: High-quality inventory remains limited, keeping prices stable. Move-in-ready homes continue to sell quickly.

• South Lyon: Demand remains strong for new construction and updated homes, particularly under $550K.

• Plymouth: A balanced market where location, walkability, and lifestyle continue to command premiums.

Mortgage activity may be softening nationally, but locally, motivated buyers are returning as more listings hit the market. Even with modest rate fluctuations, Metro Detroit’s housing market is holding its ground—proving that patience and preparation are paying off for both sides.

Final Thoughts

The next few months will continue to test both patience and strategy. As Mark Zandi put it, “The housing market will heal…but it’s going to take time, and a lot of patience.”

If you’re considering buying or selling, it’s not about timing the market—it’s about understanding it. That’s where local expertise makes all the difference.

Jeff Duneske, Northville Realtor®
Top 1% Metro Detroit Realtor® | 25+ Years | 1,300+ Homes Sold
Specializing in Northville, Novi, South Lyon & Plymouth

Let’s talk strategy: Schedule a Consultation or call 248-939-9393
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