The housing market has shifted. Interest rates have come down, making financing more affordable, and the supply of homes for sale has increased. The increase in inventory, along with falling mortgage rates is pulling buyers back into the market. New opportunities await smart buyers who act now.
While home inventory is below what is considered a “normal level”, available inventory of homes for sale is improving. ICE, Intercontinental Exchange, reported a 22% growth in “for sale inventory” in 2024. At the current pace, the real estate market would return to pre-pandemic inventory by mid-2026. With material costs coming down, builders are increasing new construction, helping the new single family home supply. The increase in supply is also helped with properties staying on the market longer. In addition, Realtor.com reports more sellers are offering price cuts, with 15.6% dropping prices in January, compared to 14.7% in January 2024. Active buyers now have more homes to choose from and a little more time for decisions going into the spring market – a benefit last year’s buyers didn’t have.
Southeast Michigan, February 2025 Local Activity
- Supply of Inventory increased 12.5 percent for Residential homes and 21.1 percent for Condo homes.
- The Median Sales Price increased by 7.6 percent to $255,000 for Residential homes and 4.0 percent to $260,000 for Condo homes.
- Days on Market increased 13.6 percent for Residential homes and 6.8 percent for Condo homes.
The luxury home market also saw a large increase in activity in 2024. Per Realcomp, which collects real estate information, the Metro Detroit area, including the counties of Oakland, Wayne and Macomb, saw an increase of 32% in homes selling over $750,000, and a 45.5% increase in homes selling over $1 million. Over 71% of these sales were in Oakland County.
Benefits of Home Ownership
- Financial Advantages - Build wealth through value appreciation and home equity
- Build wealth over time - Each payment builds your ownership stake.
- Stable Housing Costs - Fixed-rate mortgages protect against rent increases.
- Tax Advantages - Potential mortgage interest and property tax deductions.
- Personal Freedom - Make your space truly yours.
Home prices continue to increase. Waiting for the mortgage rates to come down further is countered by rising home prices. In addition, delaying a home purchase, is delaying the opportunity to build wealth. Whether you are upgrading, downsizing, or purchasing your first home, owning a home and building equity is one of the best ways to build wealth. For first time buyers, there are several mortgage programs available to assist you getting into a home.
The first steps in buying a home are: determine what you want and need in a house; determine your price point and speak with a professional Realtor to help guide you through the purchase process.
Good Luck, and happy house buying.
