October 21, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

Overview of Today’s Market Insights

Today’s housing data from HousingWire, Redfin, and Realtor.com reveal a shifting market marked by easing mortgage “lock-in” effects, the most considerable autumn buyer discounts since 2019, and steady down payment trends. For Metro Detroit buyers and sellers, this combination points to a more balanced market taking shape as 2025 winds down.

1. What Mortgage Data Tells Us About 2026 Home Sales (HousingWire)

The average U.S. mortgage rate on all outstanding loans has climbed to 4.3%, with 20 percent of homeowners paying over six percent and another 20 percent under three percent. Despite higher borrowing costs, homeowner equity remains strong; 40 percent of Americans now own their homes free and clear, and the average loan-to-value ratio stands at 44.2 percent.

This shift matters locally. In Northville, Novi, and South Lyon, we are already seeing more listings from homeowners who refinanced during the pandemic but are now ready to move again. As the “lock-in” effect continues to fade, 2026 could bring a meaningful rise in home sales, even if mortgage rates remain in the six percent range.

High equity levels are also cushioning potential stress. Homeowners who purchased or refinanced in 2021 are now paying more toward principal, accelerating wealth growth and financial flexibility. That means even if foreclosures tick up slightly next year, we are unlikely to see anything resembling a downturn.

2. Autumn Discounts Hit Their Highest Level Since 2019 (Redfin)

According to Redfin, homes sold for 1.4 percent below list price in September, the most significant seasonal discount in six years. Homes spent a median of 50 days on the market, and only 25.3 percent sold above the asking price.

For buyers in Metro Detroit, this represents one of the best negotiating windows since before the pandemic. With more inventory and fewer bidding wars, buyers can afford to be selective. Sellers, on the other hand, need to price homes precisely to stand out—especially as higher insurance and tax costs keep buyers cautious.

Locally, we are noticing that competitively priced listings in desirable communities like Maybury Park Estates, Island Lake, and Tanglewood are still selling quickly, while overpricing can lead to longer days on market. The key is strategic pricing backed by strong marketing.

3. Down Payments Leveling Off After Years of Growth (Realtor.com)

Realtor.com reports that the typical U.S. down payment remains steady at 14.4 percent, or $30,400, up an incredible 117.9 percent since 2019. The median FICO score of recent buyers sits at 735, showing that financially strong, higher-income households continue to dominate the market.

Luxury properties, those priced above $750,000, saw a 5.8 percent increase in sales, while more affordable homes declined slightly. This mirrors what we are witnessing across Metro Detroit, where affluent buyers continue to lead the market for high-end and new construction homes. At the same time, affordability remains a challenge for first-time buyers.

If mortgage rates ease further heading into 2026, expect a more diverse mix of buyers re-entering the market. Until then, steady down payment levels suggest the market is cooling in a controlled, healthy way rather than falling off a cliff.

Expert Takeaway for Metro Detroit Homeowners and Buyers

The big story today is momentum quietly returning to the housing market.

• Homeowners are gaining freedom to move again as lock-in fades.

• Buyers have more leverage this fall than they have had in years.

• Down payments and equity levels point to overall market stability.

For Northville, Novi, South Lyon, and Plymouth, this balance means opportunity—whether you are selling a luxury home, buying your first, or rightsizing for a new chapter.

If you want a detailed look at your neighborhood’s activity, I offer complimentary home equity reviews and personalized market analyses.

📞 Jeff Duneske | Northville Realtor®
Helping you make your next move with clarity and confidence.