Q3 2025 Key Results
- • Achieved 5.8% home price appreciation year-to-date
- • Inventory increased 22% compared to Q3 2024
- • Average days on market: 28 days (down from 45 in Q1)
- • New construction sales up 35% from last year
Q3 2025 Market Performance
The third quarter of 2025 has exceeded our early-year projections, with Metro Detroit's real estate market showing remarkable resilience and growth. The tri-county area has experienced stronger-than-expected price appreciation while maintaining healthy inventory levels, creating an ideal environment for both buyers and sellers.
Price Performance by County
Wayne County
Year-over-year appreciation
- • Median price: $285,000
- • Average DOM: 25 days
- • Inventory: +18%
Oakland County
Year-over-year appreciation
- • Median price: $425,000
- • Average DOM: 32 days
- • Inventory: +25%
Macomb County
Year-over-year appreciation
- • Median price: $315,000
- • Average DOM: 27 days
- • Inventory: +28%
Market Drivers in Q3 2025
Several key factors have contributed to the strong Q3 performance:
- • Interest rates stabilized in the 6.2%-6.8% range, improving buyer confidence
- • Major automotive investments brought 8,500 new jobs to the region
- • New construction deliveries increased housing supply significantly
- • Out-of-state buyer migration continued, particularly from California and New York
- • Corporate relocations to downtown Detroit accelerated luxury condo demand
2026 Market Projections
Expected Trends for 2026
Price Appreciation
- • Projected 3.5%-4.8% appreciation
- • More sustainable growth pace
- • Luxury market ($500K+) leading gains
- • Entry-level homes maintaining strong demand
Market Conditions
- • Inventory levels to stabilize at 4-5 months
- • Interest rates projected 5.8%-6.5%
- • New construction to add 18,000 units
- • Commercial development accelerating
Emerging Neighborhoods to Watch in 2026
Ferndale & Royal Oak
Young professional migration driving demand for walkable communities with dining and entertainment options.
- • Projected 2026 appreciation: 6-8%
- • New mixed-use developments planned
- • Transit improvements enhancing connectivity
Canton & Plymouth
Family-friendly communities benefiting from excellent schools and new construction activity.
- • Projected 2026 appreciation: 4-6%
- • Major retail and recreation investments
- • Strong resale value potential
Rochester Hills & Troy
Luxury market strength continuing with corporate executive relocations and premium amenities.
- • Projected 2026 appreciation: 5-7%
- • High-end new construction increasing
- • Technology sector job growth driving demand
Strategic Opportunities for 2026
For Buyers
- • Q4 2025 presents seasonal buying opportunities
- • New construction incentives peak in winter months
- • Rate lock programs becoming more favorable
- • Inventory selection at 3-year highs
- • First-time buyer programs expanding in 2026
For Sellers
- • Spring 2026 market expected to be robust
- • Home improvements showing strong ROI
- • Energy efficiency upgrades in high demand
- • Strategic pricing crucial in balanced market
- • Professional staging more important than ever
Economic Factors Shaping 2026
Several economic developments will influence the 2026 real estate landscape:
- • Ford's $3.7 billion EV investment creating 6,200 new jobs
- • Google's Detroit tech hub expansion adding 2,800 positions
- • Infrastructure improvements enhancing regional connectivity
- • Downtown Detroit residential projects attracting young professionals
- • Tourism and hospitality sector recovery boosting service jobs
Investment Outlook
Metro Detroit continues to attract both local and national real estate investors. The combination of affordable entry points, strong rental demand, and economic diversification makes the region particularly attractive for long-term real estate investment strategies. Rental yields remain competitive at 8-12% in many submarkets.
Ready to Capitalize on 2026 Opportunities?
Whether you're planning to buy, sell, or invest, positioning yourself now for 2026 success starts with expert market guidance.