November 5, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

November 5, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

Today’s Daily Hot Sheet pulls together three big pieces of data that shape what is happening right now for buyers and sellers in Metro Detroit:

• First time buyer share has dropped to a record low nationally

• Private sector job growth is modest and pay growth is steady

• Mortgage applications have cooled week over week, but purchases and refinances are still well above last year

Below is what it means for you if you are buying or selling in Northville, Novi, South Lyon or Plymouth.

First time buyers fall to a record low share of the market

New data from the National Association of Realtors shows first time buyers now make up only 21 percent of home purchases, down from 24 percent last year and roughly half of where they were before the Great Recession when they were closer to 40 percent of the market.

A few key points from the report:

• This is the lowest first time buyer share since NAR began tracking the data in 1981

• The median age of a first time buyer has moved up to 40

• The median age of all buyers is now 59, and repeat buyers sit at 62

• Among first time buyers:

  • About one third are between 25 and 34

  • About one quarter are between 35 and 44

• The median down payment for first time buyers is now ten percent, the highest since the late nineteen eighties

Demographics also continue to shift. Half of first time buyers are married couples, while single females account for about one quarter of first time purchases. Ethnic diversity is rising among first time buyers, with about one third identifying as non White or Hispanic.

On the financial side, the median household income for first time buyers is just over ninety four thousand dollars, slightly lower than last year and well below repeat buyer incomes. Many first timers are pulling together down payments from a mix of savings, financial assets like retirement accounts, and help from family.

NAR’s deputy chief economist summed it up as a tale of two very different buyer groups. Equity rich repeat buyers are coming in with large down payments or all cash, while many first time buyers are struggling to get a foothold in the market.

What this means for Metro Detroit buyers and sellers

• If you are a first time buyer in Northville, Novi, South Lyon or Plymouth, the bar for qualification and savings is higher than it used to be. The good news is that there are still paths forward with the right strategy on financing, down payment assistance and realistic expectations.

• If you are a move up or move down seller with strong equity, you are in a powerful position. You can often structure more flexible terms, larger down payments on your next home, or even consider all cash options in certain price ranges.

• For sellers locally, fewer first time buyers and older average buyers often mean longer ownership timelines and more equity on both sides of the transaction. Pricing and positioning your home correctly is crucial to capture that demand.

As a Northville Realtor and Metro Detroit Senior Real Estate Specialist, a big part of my role is helping both first time buyers and long time owners navigate these shifts so the move still makes sense for your life and your numbers.

Jobs and pay: ADP shows modest growth and steady wages

The latest ADP private sector employment report shows employers added about forty two thousand jobs in October, the first increase since midsummer. Growth was led by education, health care, trade and transportation. Annual pay growth is running at about four and a half percent for people staying in their jobs and just under seven percent for job changers.

Large companies did most of the hiring, while smaller and mid sized firms pulled back slightly. Regionally, the West led job gains, but the Midwest still showed positive growth overall.

ADP’s chief economist describes it as a market where supply and demand for labor are becoming more balanced. Pay growth has been flat for over a year, which can ease pressure on interest rates over time but also means many households are not seeing big jumps in income.

Local takeaway

For Metro Detroit buyers and sellers, steady employment and moderate pay growth are supportive of housing demand, but they do not erase affordability challenges overnight. Lenders are still looking closely at income, debt and reserves, and that is where strong guidance on pre approval and budgeting becomes important.

Mortgage applications and rates: activity dips slightly, but demand is higher than last year

Mortgage Bankers Association data for the week ending October thirty first shows total mortgage applications down about two percent from the prior week. Purchase applications slipped one percent week over week but remain about twenty six percent higher than the same time last year. Refinances are down slightly for the week but still up more than one hundred fifty percent versus a year ago as more homeowners take advantage of lower rates.

The average thirty year fixed mortgage rate for conforming loans is holding around six point three one percent, very close to the lowest level in over a year. Points and fees were essentially unchanged.

MBA’s deputy chief economist notes that while weekly moves can bounce around with Treasury yields and Federal Reserve expectations, today’s rates are meaningfully lower than the peaks we saw before, and that is supporting both new purchase activity and refinances for borrowers with larger loan sizes.

What this means if you are planning a move

• Buyers: A six percent range rate is still higher than a few years ago, but it is a different conversation than seven percent plus. In many cases we can structure offers with seller concessions or rate buydowns to bring your monthly payment to a more comfortable level, especially in price points common in Northville, Novi, South Lyon and Plymouth.

• Sellers: More qualified buyers are re entering the market as rates ease. Well prepared and well priced homes are still seeing strong interest, especially in the sweet spot price ranges for our area.

• Current owners: If you bought or refinanced when rates were higher, it can be worth a quick review to see whether a refinance or a move up or rightsizing move could improve your payment or better match your lifestyle.

How to use this information in Northville, Novi, South Lyon and Plymouth

Putting all of this together, here is the bottom line for you today:

• First time buyers are fewer in number and facing real affordability challenges

• Repeat buyers and long time owners have more equity and more options

• The job market is steady, not booming, which favors thoughtful planning

• Mortgage rates have improved from the peaks and are creating real opportunities for well prepared buyers and sellers

If you are thinking about a move and want a clear, local plan, that is where having a Top Realtor in Northville, Novi and South Lyon who studies this data every day makes a real difference. As a Northville Realtor, South Lyon Realtor, Novi Realtor and Metro Detroit Senior Real Estate Specialist, my goal is to help you make a confident decision that fits both your life and your finances.

When you are ready to talk about buying or selling in Northville, Novi, South Lyon or Plymouth, I am here as a resource, not pressure.

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