Julie Thomas had been searching since January for a house that would give her more space for herself and her two dogs while moving her closer to work. After seeing several homes quickly snapped up, she recently went under contract for a home in Shelby Township.
“I’m very happy that we are at least working on one and that the offer was accepted,” she said. “I was definitely getting discouraged continuing to look. I’m obviously relieved from that aspect of it.”
Thomas, 25, is among Metro Detroit homebuyers experiencing a housing market in a transitional moment on multiple fronts. As the peak spring buying season begins, more listings are coming online and activity is picking up after a slower winter, even as mortgage rates have climbed back above 6%. At the same time, the average homebuyer is older than in past years, highlighting how affordability is shaping who is able to enter the market.
The median first-time homebuyer in 2025 was 40 years old, up from 30 in 2010, according to the National Association of Realtors, while Redfin reports a median age of 35. And older buyers aren’t slowing down. When including repeat buyers, those upgrading, downsizing or buying vacation homes, the median age of all U.S. homebuyers jumps to 59, up from 39 in 2010, according to Apollo chief economist Torsten Slok, who analyzed the NAR data.
Redfin puts the median age of repeat buyers at about 47. That means people aren’t just buying their first homes later. Older Americans are buying multiple times later in life instead of staying put.
Market has more showings, more buyers
The upcoming spring market is expected to bring increased activity after a winter of slower sales and moderated price increases. There were fewer homes sold in February in Metro Detroit, with year-over-year sales down and prices rising modestly.
“I would say it does feel that we are entering the very early stages of our spring market,” said Jeanette Schneider, president of RE/MAX of Southeastern Michigan. “We’re seeing more activity. There’s more showings being scheduled. There are more buyers out there. They’re looking, which is good. It’s something that we want to see at this time of the year.”
Home sale activity across Metro Detroit, including Wayne, Oakland, Macomb and Livingston counties, was down year-over-year with 2,660 transactions, down from 2,864 last year, according to the latest RE/MAX of Southeastern Michigan housing report. The median sales price was relatively stable, slipping to $297,500 from $300,000 in January, but up from $293,375 last year. Inventory levels remained between three and four months of supply, while homes continued to sell at a steady pace of about 40 days on market, according to the report.
Across a broader area covering 18 Michigan counties, new listings in February rose year-over-year, increasing 3.6% to 8,516 from 8,224, according to the latest Realcomp report. The report includes Genesee, Hillsdale, Huron, Jackson, Lapeer, Lenawee, Livingston, Macomb, Monroe, Montcalm, Oakland, Saginaw, Sanilac, Shiawassee, St. Clair, Tuscola, Washington and Wayne counties.
“I know that sales are down, but I do think that it’s positive to have the homes on the market increase for those that are searching for a home, to give them more opportunity to find what they’re looking for,” said Karen Kage, CEO of Realcomp II Ltd. “That’s been seriously missing, like last year and this year or the year before. And so it’s nice to have, nice to see that improving so that again, they have more to choose from, especially first-time homebuyers, it’s really nice that they have more options.”
The Realcomp report also notes that pending sales fell 7.5% to 6,327 from 6,842, and closed sales decreased 10.1% to 5,794 from 6,443. The median sale price increased 2.9% to $262,000 from $254,500, and homes spent an average of 52 days on the market, up slightly from 50 days a year ago. The report also found that about 26% of new listings and 34.9% of pending sales were both listed and pending in the same month.
“To see that many homes listed and sold, or at least under contract, in the same month is very encouraging,” Kage said.
Rates influence buyers
Mortgage interest rates have ticked back above 6% after briefly dipping below that level in late February for the first time since 2022, according to Freddie Mac, coinciding with the increase in the 10‑year Treasury yield.
“Despite the modest uptick, buyers are responding to rates in this range, with existing-home sales increasing 1.7% in February,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Purchase applications also increased this week, a welcome sign as buyers enter spring homebuying season with rates down more than half a percentage point compared to the same time last year.”
More: Michigan’s priciest homes: A look at luxury sales in 2025
The mortgage rate environment has had an impact on buyer behavior. “And while interest rates have kind of gone back to right about 6%, they’ve been pretty stable,” Schneider said. “That also helps buyers feel confident in moving forward.”
Kristie Lohmann, a Realtor associate with RE/MAX First in Shelby Township, said seeing rates just under 6% has been encouraging, though they’re higher than the record lows of recent years.
“People that bought a home during COVID got the 3% interest, and they’re not going anywhere because they don’t want to pay more now,” she said. “If you want to do something and you can afford the higher payment, do it and hope the rates come down. But it’s still a factor buyers have to consider.”
Affordability is impacting who enters the housing market and when. Angie Sierra, a Southfield-based agent with RE/MAX City Centre, said the typical first-time buyer she sees is 35 to 40.
“I do see quite a bit of young homeowners as well,” she said. “I have a few college students that have purchased a home, but overall, the average is in the upper 30s to early 40s.”
Among those buyers is Erica Johnson, 35, and her fiancé, Stephaun Patterson-Lovelace Sr., 36, who recently purchased their first home in Garden City for $237,900 through a land contract. It’s a three-bedroom, one-bath house with a two-car garage, fenced backyard and space for their blended family of four children, ages 9 to 18. Johnson said the process was challenging but rewarding.
Given the average age of first-time homebuyers, Johnson, a pharmacy technician, said she was told that she and Patterson-Lovelace, an Xfinity technician, were “right where they needed to be” in terms of buying a house.
“So it feels really good to not have to worry about rent, to not have to worry about somebody else’s rules and all this other stuff,” she said. “We get our own, and we can stay pretty much as long as we want to. But then we also have equity in the house moving forward.”
First-timers face high prices for lots of work
The condition of homes is another challenge for buyers, particularly first-time buyers.
Lohmann noted that many properties come on the market in less-than-ideal shape, sometimes prompting buyers to pay high prices for homes that require significant work.
“I walk in some houses and say, ‘What are they asking for this house?’” Lohmann said. “They weren’t in the best condition, and I was kind of shocked what the seller was asking.”
A move-in-ready home can make all the difference for first-time buyers. That was the case for Thomas, the first-time homebuyer from Chesterfield Township, who began her search focusing on Sterling Heights, Shelby Township and Clinton Township to be closer to her job as a registered dietitian in Pontiac.
She said her search was challenging, with homes selling quickly and prices high relative to their condition.
“Being in it makes you realize just how expensive everything is for not much, whatever you’re going to get,” she said. “It can be discouraging for sure, thinking about the market and the economy and everything.”
Thomas found a home in Shelby Township that fit her budget, making an offer of $275,500. The three-bedroom, one-bath home includes a two-car garage, a fenced backyard, a shed, a fireplace and brand-new appliances.
The home is largely move-in ready, with the recent inspection helping her identify typical maintenance needs, she said: “It’s just too (great to) pass up.”
Buyers have to maintain realistic expectations, said Marcy Soufrine, an agent with Keller Williams, especially amid tight inventory and rising prices. That often means adjusting priorities.
“They’re willing to look at slightly smaller homes, different locations, or just wait for the right opportunity,” she said, adding that sellers are starting to prepare their homes for the spring market, which could add more options for buyers.
“I’ve been talking to more people who are thinking about putting their homes on the market in the next few months. They want to get an idea of what they need to do to get their homes ready and where we can price them,” she said. “Anyone that wants to list should do it before May, June, July, because when more homes hit the market at the same time, you have more competition.”
As for Johnson, she and her fiancé worked out a deal for seller financing to make their first home purchase possible. They plan to move in and gradually make improvements, including adding a bathroom in the basement.
“We basically can move in and just fix it up over time,” she said. “But it’s our house, and it’s something we have, and we can build on that.”
cwilliams@detroitnews.com
