Detroit’s single-family housing market showed exceptional activity in early October, with sellers maintaining control as the median listing price reached $257,000. The Michigan metro absorbed 1,331 listings at a median price of $280,000 during the seven-day period ending Oct. 10, while maintaining inventory at 1.77 months of supply.

HW Data indicates sellers maintain the advantage in one of the nation’s competitive affordable housing markets, creating opportunities for investors and first-time buyers who must navigate seller-favorable conditions in a rebounding metro economy.

Tight inventory reinforces sellers market

Detroit’s 1.77 months of inventory falls well below the national benchmark of 2.39 months, creating a seller-favorable environment. The market maintained 8,561 active listings with a median price of $257,000, while 914 new properties entered inventory at a median of $265,000. Properties averaged 88 days on market with a median of 49 days, demonstrating faster turnover than the national mean of 112 days.

The price per square foot reached $179.50, offering a 16% discount compared to the national median of $214.83. With homes averaging 1,801 square feet, Detroit attracts first-time buyers and investors seeking value, though sellers maintain pricing leverage in the competitive environment.

Strong pending pipeline indicates sustained momentum

Detroit’s pending sales pipeline showed robust depth with 4,789 properties under contract, reflecting strong near-term transaction volume. New pending contracts totaled 1,040 properties at a median price of $285,000, demonstrating buyer willingness to compete at higher price points in the sellers market. Pendings averaged 54 days in contract, suggesting longer financing processes on value-oriented purchases.

The median pending price of $265,000 aligned closely with active listing prices, indicating minimal negotiation gaps in the competitive environment. Price reductions affected 38% of listings at a median decrease of 5.2%, with sellers making strategic adjustments to capture buyer interest while maintaining overall pricing power in the fast-moving sellers market.

Value-oriented sellers market attracts diverse buyers

Detroit’s combination of a $257,000 median price, 1.77 months of inventory and sellers market conditions creates compelling opportunities for multiple buyer segments willing to compete. First-time homebuyers gain access to affordable homeownership, while investors can acquire properties with strong cash flow potential, though both must navigate seller-favorable negotiation dynamics.

The rental market offered 1,367 units at a median monthly rent of $1,400, providing investors with attractive yield opportunities. With sellers market conditions and sustained absorption rates, Detroit’s housing market enters the final quarter of 2025 with momentum that rewards professionals who can identify value opportunities and counsel buyers on competitive strategies necessary to secure properties in a supply-constrained, seller-controlled environment.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate housing market reports. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.

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