Northville, Novi, South Lyon and Plymouth Real Estate Market Update | October 15, 2025 by Jeff Duneske, Northville Realtor®

Fed Chair Powell Hints at the End of Tightening - What It Means for Metro Detroit Real Estate

Federal Reserve Chair Jerome Powell announced this week that the Fed’s balance sheet reduction program could wrap up “in the coming months.” That means the central bank may soon stop shrinking its $6 trillion bond holdings, a move that could signal stabilizing interest rates ahead.

For homebuyers and sellers across Northville, Novi, South Lyon, and Plymouth, this could mean the next few months bring a more predictable rate environment, and potentially lower mortgage rates if the Fed follows through with expected rate cuts later this year.

Powell also noted that the labor market has softened and that the Fed’s focus is shifting toward maintaining employment while continuing to ease inflation pressures. For Metro Detroit homeowners, this balance could bring more buying power back into the market.

Gen Z Still Dreaming of Homeownership - Despite Affordability Concerns

A new Realtor.com report found that 82% of Gen Z believe buying a home is harder for their generation, yet nearly 70% still see real estate as a pathway to wealth.

In markets like Northville, Novi, and South Lyon, where demand remains high, affordability challenges are real - but younger buyers are adapting. Many are saving early, taking on side jobs, and looking at starter homes, condos, and townhomes as stepping stones toward long-term ownership.

💡 Local Insight: We’re seeing more first-time buyers in Metro Detroit pivot toward new construction communities with builder incentives or smaller single-family homes in areas like Lyon Township and Canton to stretch their dollars.

Foreclosure Activity Rises Slightly - Still Below Historical Norms

ATTOM’s Q3 2025 Foreclosure Report shows a 17% year-over-year increase in foreclosure filings nationwide. While numbers are rising, activity remains well below the 2008-2012 peaks.

Locally, Metro Detroit’s foreclosure activity has stayed moderate, with most distressed properties moving quickly due to strong investor demand. If you’re considering investing or buying a fixer-upper, now’s a smart time to explore REO and off-market opportunities before competition increases.

Cash Offer Markets Surge - Investors Still Active Nationwide

Zoodealio reports that cash buyers are dominating in cities like Las Vegas, Miami, and Houston - and we’re seeing similar trends locally. Cash remains king in competitive price ranges under $500K across Oakland, Wayne, and Washtenaw Counties.

Sellers who price strategically and prep their homes well are still seeing multiple offers - especially in desirable communities like Northville Hills, Novi’s Island Lake, and South Lyon’s Tanglewood.

Bottom Line

Even as the Fed signals a potential policy shift, Metro Detroit’s real estate market continues to show resilience. Mortgage rates may ease, inventory remains tight, and buyers are adjusting strategies - from Gen Z first-timers to cash-ready investors.

If you’re considering a move in Northville, Novi, South Lyon, or Plymouth, let’s talk about how these shifts could impact your buying or selling plans before year-end.

📞 Jeff Duneske | Keller Williams Advantage | OneDaySold
Your local Northville Realtor® | Over 1,300 homes sold
📍 Serving Northville, Novi, South Lyon, and Metro Detroit