October 17, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

Overview

National housing data this week shows a stable but complex market landscape. The Fannie Mae Home Purchase Sentiment Index (HPSI) remained flat in September at 71.4, while renters nationwide are starting to see meaningful affordability improvements.

Let’s take a closer look at what these national trends mean for homeowners and buyers here in Northville, Novi, South Lyon, and Plymouth.

The Home Purchase Sentiment Index Holds Steady

According to Fannie Mae, the Home Purchase Sentiment Index stayed unchanged at 71.4 in September 2025, reflecting mixed consumer feelings about buying and selling.

• Only 27 percent of consumers believe it’s a good time to buy, while 57 percent say it’s a good time to sell.

• Compared with last year, the overall index is down 2.5 points, showing that while buyers remain cautious, sellers continue to see opportunities.

The report also revealed that mortgage rates could fall below 6 percent by the end of 2026, which, if realized, could bring new momentum to both first-time buyers and move-up sellers in the Metro Detroit area.

Buying and Selling Conditions

• Buying Sentiment: Just over one in four Americans think it’s a good time to buy. Although this seems low, it’s an improvement from last year’s extreme lows. Locally, we are seeing steady buyer activity, particularly in the $400,000 to $700,000 price range where inventory remains limited.

• Selling Sentiment: A majority of consumers, 57 percent, still view it as a good time to sell, though optimism has dipped slightly from 2024. This aligns with what we are seeing in Northville and Plymouth, homes priced accurately are still selling quickly and often with multiple offers.

Home Prices and Mortgage Rates

• Price Outlook: Forty percent of those surveyed expect prices to continue rising over the next 12 months. Consumers predict an average home price increase of 1.8 percent, which indicates confidence in long-term housing stability.

• Mortgage Rates: Only 32 percent of respondents expect rates to decline, suggesting buyers are beginning to accept that higher borrowing costs may persist through 2025.

For Metro Detroit homeowners, this stability means pricing your home strategically remains essential. For buyers, small rate changes are less important than identifying the right property and locking in an affordable monthly payment.

Job Security and Income Trends

The Fannie Mae report also found that 75 percent of Americans are not concerned about job loss, a 3-point improvement from the previous month.

Household income remained steady, with 77 percent of respondents saying their earnings were about the same as last year. These trends support a healthy local housing market, as stable employment and income are key drivers of sustained buyer confidence.

Rental Market Sees Continued Relief

The latest Realtor.com Rent Report showed the median national rent at $1,703, marking the 26th straight annual decline. Renters now spend just 23.4 percent of their income on rent, compared to 24.9 percent a year ago.

While affordability has improved, rents are still roughly 16 percent higher than before the pandemic, and supply challenges continue in many areas.

Locally, Metro Detroit renters are beginning to find more flexibility, with new apartment developments and stabilized rents in suburbs like Novi, Canton, and Lyon Township offering more options than a year ago.

What the Experts Are Saying

Realtor.com’s Chief Economist Danielle Hale noted that “two years of gradual rent declines have given renters a bit more breathing room.” However, affordability remains stretched in high-cost coastal markets.

Senior Economist Jiayi Xu added that “more new rentals coming to market means renters have additional choices and a bit more leverage.” The takeaway: supply growth is finally helping balance demand, even if slowly.

Local Insight: What It Means for Metro Detroit

The latest data confirms what we are seeing daily in the Northville and Novi real estate markets. Buyers are more cautious but still active. Sellers with well-presented, well-priced homes continue to attract serious interest.

Meanwhile, the rental market’s slight cooling provides relief for those weighing the rent-versus-buy decision. With rates expected to moderate further into 2026, late 2025 could offer new entry points for buyers who have been waiting on the sidelines.

Final Thoughts

The current housing landscape may not feel perfect, but stability is a sign of strength. As we head deeper into the fall season, Metro Detroit continues to show balance—steady demand, disciplined pricing, and renewed consumer confidence.

If you are considering a move, whether buying or selling, now is the time to plan your strategy before the spring 2026 market heats up.

Reach out anytime to discuss how these trends relate to your specific goals.

Jeff Duneske
Northville Realtor® | Keller Williams Advantage
Serving Northville, Novi, South Lyon, Plymouth, and Metro Detroit