Buying a Home in Metro Detroit – August 2025 Market Update

by Emily Wakeford

Thinking about buying a home in Metro Detroit this August? You’re not alone. summer is always a busy season for the real estate market, but 2025 is looking a little different. Inventory is climbing, price growth is showing signs of slowing in certain neighborhoods, and mortgage rates remain steady but elevated.

If you’re planning to buy a home in Metro Detroit before fall, understanding these market trends is key. In this blog, I’ll break down the latest numbers, what they mean for buyers, and how you can navigate the market to find the best deal possible.

And if you want to see the full stats, watch my Metro Detroit July 2025 Market Update video where I dive deeper into the data.

Metro Detroit Housing Market Overview – August 2025

Let’s start with the numbers. Metro Detroit is seeing more homes hitting the market compared to this time last year. As of July, active listings are up 25% year-over-year, totaling 8,859 homes for sale. In Detroit alone, there’s been a 16.7% increase in homes for sale from May to June 2025. which is giving buyers more choices.

Home prices, however, are still holding strong. The median home price in Metro Detroit is now $312,000, which is 31.8% higher than last year. While that’s a big jump, we’re starting to see more price reductions—about 20.7% of listings cut prices in June 2025—which is a sign the market is balancing out.

Homes are also spending a little more time on the market nationally, but Detroit is bucking that trend. The average days on market here is 42 days, compared to 53 days nationwide.

What Buyers Should Know in August 2025

If you’re planning to buy a home in Metro Detroit, August is shaping up to be a great month for buyers. Here’s why:

More inventory = more options. With inventory up 25% compared to last year, you’re less likely to get caught in an intense bidding war for every home you like.
Room to negotiate. The rise in price reductions is opening up opportunities for buyers to negotiate closing costs, repairs, or even snag a slightly lower price.
Multiple offer situations still exist but only for the best-priced homes. If you’re looking at a home that’s move-in-ready and priced right, you’ll still want to act fast. But if you’re flexible, you’ll have more leverage than you did a year or two ago.

Mortgage Rates & Affordability

Mortgage rates have been relatively steady this summer. The average 30-year fixed rate is between 6.75% and 6.85%, which is keeping some buyers on the sidelines.

But here’s the thing.....waiting for rates to drop significantly might not be the best strategy. Experts aren’t predicting major drops in 2025, and even if rates dip slightly, home prices in Detroit are still climbing. Locking in a rate now, especially with the right lender or by using a rate buydown strategy, can still get you a monthly payment you’re comfortable with.

Strategies for Home Buyers in Metro Detroit Right Now

Here are a few tips if you’re planning to buy this month:

Get pre-approved early. With rates hovering near 7%, having a pre-approval in hand gives you a clear budget and makes you competitive when you find the right home.
Look for homes on the market 30+ days. These sellers may be more motivated and willing to negotiate.
Don’t skip the “almost perfect” homes. A house with older paint or dated countertops can be an opportunity—you can update it for less than paying a premium for the “Instagram-ready” homes.
Be open to rate buydowns or seller incentives. Some sellers are offering concessions to offset high rates.

Should You Buy Now or Wait?

This is the question everyone’s asking. The truth is if you find a home you love and it fits your budget, it’s always a good time to buy. With inventory rising, you’re less likely to feel rushed into a decision. Plus, you can always refinance later if rates drop.

For those who are waiting in hopes of prices dropping, there’s no guarantee that will happen. Even with price reductions, the median home price is still trending upward compared to last year.

Key Takeaways for August 2025 Buyers

Inventory is up 25%, giving buyers more leverage.
Home prices are still high but starting to show signs of balance with price cuts.
Mortgage rates remain steady around 6.8%, but creative financing options can help.
This is a good month to shop before the fall market heats up.

Watch the July 2025 Market Update Video

If you want a full breakdown of the latest trends, check out my Metro Detroit July 2025 Market Update video. I share insights on home prices, buyer demand, and tips for both buyers and sellers this summer.

Ready to Buy in Metro Detroit?

Whether you’re buying your first home or upgrading to your dream home, I’d love to help you make the process simple and stress-free.
📲 Call or Text: 586-265-6265
📧 Email: Soldbyemilywakeford@gmail.com