October 20, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

Market Overview

According to HousingWire’s Logan Mohtashami, the U.S. housing market has regained its footing since mid-June 2025 as mortgage rates dipped below 6.64%. This shift has revived buyer demand, slowed inventory growth, and boosted homebuilder confidence, positive signs heading into year-end.

In Metro Detroit, we’re seeing these national trends reflected locally, with more active buyers returning to the market and homes priced right moving faster than earlier in the year.

Mortgage Rates and Market Stability

Mortgage rates remain near their 2025 lows, holding close to the key 4% benchmark on the 10-year Treasury yield. Mohtashami notes that breaking this level could push mortgage rates toward his 5.75% forecast bottom.

Lower borrowing costs have clearly helped stabilize demand, with seven of the past eleven weeks showing growth in mortgage purchase applications, including 11 straight weeks of double-digit year-over-year gains.

Inventory Trends

Active listings rose only slightly this past week — from 856,870 to 859,419, marking one of the slowest growth periods of the year. That’s down sharply from earlier 2025 when inventory was up 33% year-over-year; it now stands at 16.2% growth.

In our Northville, Novi, South Lyon, and Plymouth markets, we’re observing similar moderation. Fewer new listings are coming online as homeowners stay put longer, and buyer demand is keeping well-priced homes moving. Expect inventory to taper seasonally through the holidays.

Homebuilder Confidence Rebounds

The NAHB/Wells Fargo Housing Market Index climbed five points to 37 in October, the highest since April. Builders are becoming more optimistic, with future sales expectations jumping nine points to 54, signaling stronger momentum into 2026.

Mortgage rates easing from 6.5% to 6.3% has improved affordability slightly, while small and mid-sized builders continue to find opportunities in remodeling and luxury markets.

Locally, we’re seeing increased builder activity in new-construction communities across Northville and South Lyon, with a mix of ranch and low-maintenance designs catering to move-down buyers and rightsizers.

Home Sale Profits and Prices

New data from ATTOM shows U.S. home sellers in Q3 2025 earned a 49.9% median profit ($123,100), up from last quarter but down from a year ago. The median sale price hit a record $370,000, up 3.4% year-over-year.

Metro Detroit stands out nationally for strong appreciation. Markets like Detroit (+17.4%), Flint (+12.9%), and Dayton (+14.8%) ranked among the top five for annual price gains.

Average homeownership tenure reached 8.4 years, the longest in 25 years, showing that homeowners are staying put longer, keeping inventory tight.

Cash and Investor Activity

All-cash purchases made up 38.9% of U.S. home sales, and institutional investors bought 6.4% of homes. While those trends are more concentrated in southern and coastal markets, cash offers remain strong in Metro Detroit, especially among downsizers and relocation buyers.

Local Takeaway

Even with seasonal slowdowns ahead, the fundamentals are pointing toward a stable close to 2025. Rates near 6% have reignited activity, and seller profits remain historically high.

For Metro Detroit homeowners considering selling, this window offers an opportunity to capture top value before winter listings tighten. Buyers, meanwhile, are finding slightly more breathing room as inventory steadies and rates ease.

Expert Insight from Jeff Duneske

“We’re entering a balanced phase, one where buyers finally have options again, but sellers still hold strong equity positions. In Northville, Novi, South Lyon, and Plymouth, properly priced homes continue to attract serious offers within days. If rates stay near current levels, early 2026 could kick off with renewed momentum.”

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.