October 19, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

2026 Housing Market Outlook: A Healthier, More Active Market Ahead

Insights by Jeff Duneske, Northville Realtor®

After a few years where the housing market felt stuck in neutral, 2026 could be the year things shift back into gear. Expert forecasts suggest more people will make a move, and that momentum may open new opportunities right here in Metro Detroit.

1. More Homeowners Are Expected To Move

Over the past two years, many potential movers hit pause due to affordability challenges and higher interest rates. But as life events, job changes, and family needs continue, that pause can only last so long.

Industry experts now project a noticeable increase in home sales for 2026, both nationally and locally. In Northville, Novi, South Lyon, and Plymouth, we’re already seeing early signs—more listing inquiries, stronger buyer interest, and renewed confidence that better affordability is within reach.

2. Mortgage Rates May Continue To Ease

The number one question every buyer asks: Where are rates headed?

After peaking near 7% earlier this year, mortgage rates have begun to gradually ease. Experts forecast this trend will continue into 2026, but at a slow and steady pace. As the saying goes, “When rates go up, they take the escalator, but when they come down, they take the stairs.”

Expect modest improvement and some volatility along the way as new economic data comes in. Still, most projections show rates dipping into the low 6s, or possibly the high 5s, by mid to late 2026.

Even a half-point reduction can mean hundreds of dollars saved monthly, significantly improving affordability for buyers across Metro Detroit’s popular suburban markets.

3. Home Prices Will Rise at a Moderate, Sustainable Pace

What about prices? Forecasters predict steady, moderate growth. While prices will still increase, the pace will be far more balanced than the double-digit gains of recent years.

Locally, limited inventory remains a key factor. Many Metro Detroit suburbs, including Northville, Novi, and Plymouth, continue to face fewer available homes than buyer demand can support. This supply-demand imbalance will likely keep prices firm through 2026, but not soaring.

Buyers can take comfort in knowing that while home values remain strong, the days of rapid price spikes appear to be behind us.

4. What This Means for You

If you’ve been waiting for the “right time” to move, 2026 could be your year.

• For sellers: Increased buyer activity and steady prices mean strong market conditions ahead.

• For buyers: Gradually easing mortgage rates and predictable price growth will improve affordability and confidence.

After a quieter couple of years, next year’s outlook points to a healthier, more active housing market, especially across Metro Detroit’s vibrant communities.

Bottom Line

2026 is shaping up to bring renewed movement, balance, and opportunity. With sales projected to rise, mortgage rates trending lower, and price growth stabilizing, the housing market is entering a new phase of confidence.

If you’re thinking about making your move—whether buying, selling, or rightsizing, now’s the time to plan ahead. Let’s connect and position you to take advantage of what’s coming in 2026.