Good luck finding a cheap starter home in Livonia these days.
Nearly half of all listings in the Wayne County suburb sold above asking price last year, while the average home there spent just over two weeks on the market, according to a report by Construction Coverage, a research firm that publishes data on the real estate industry.
And it wasn’t just Livonia. Other Detroit suburbs like Troy and Royal Oak ranked near the top of Construction Coverage’s “hottest” real estate markets in Michigan.
"Metro Detroit’s housing market is active and price-resilient, but more balanced than the peak frenzy we saw a few years ago," said Jeanette Schneider, president of REMAX of Southeastern Michigan, in an email to The Detroit News.
"Inventory has improved slightly, giving buyers more options, but we’re still not at a level that creates true balance," she said.
The scores were calculated using Redfin data on the one-year change in median sale price, homes sold above asking price, median number of days on the market, average sale-to-list percentage and the share of listings with price drops.
Where are home prices spiking in Michigan?
Michigan ranked 13th among states with the hottest real estate markets, just ahead of California, though it still trailed Midwestern neighbors Wisconsin and Illinois, according to the Construction Coverage report.
Every city in Michigan, with the exception of Taylor, saw its median sale price increase year-over-year in 2025, ranging from a modest 0.9% in Flint to a nearly 10% jump in Kalamazoo.
In southeast Michigan, Detroit and Southfield led the pack, with home sales in both cities increasing by more than 8%. According to Redfin data, the median home sale price in Detroit in January 2026 was $93,000, up from $85,000 in December 2024.
"Communities like Shelby Township, Clinton Township, Livonia, Rochester, Commerce Township, and Canton are all experiencing strong interest leading to rising home values and relatively quick sales," Schneider said.
But cities with the highest home values don't necessarily have the highest demand, the data showed.
Despite ranking first and second for the highest median sale price in January 2026, Rochester Hills and Ann Arbor both trailed other cities in categories like the share of homes sold above asking price and median number of days on the market.
The median home in Ann Arbor, for example, spent 41 days on the market, compared with 16 days in Livonia or just 10 days in Wyoming, near Grand Rapids.
"It really comes down to price, condition, and presentation. Buyers are more selective, so homes that are well-prepared and priced right from day one move the quickest," Schneider said.
Detroit homes staying on the market longest
While the median value of a home in Detroit has increased in recent years, buyers may be less willing to swallow higher sale prices — the median home in the city spent 50 days on the market.
That's the longest median time on the market of any city in Michigan by more than a week. As a result, only 1 in 4 Detroit homes last year sold above asking price, fewer than all cities except Battle Creek and Flint. A similar share of homes in the city sold after being relisted at a lower price.
That might be frustrating for homeowners looking to sell their property, but it means that Detroit continues to rank among the most affordable big cities in the country to buy a home.
"Compared to national trends, Detroit is holding up well on pricing because we remain more affordable," Schneider said.
"The biggest story, locally and nationally, is affordability," she said, "buyers are still there, but they’re more sensitive to monthly payments at current rates."
Emerging markets to watch
While the data showed that Livonia and Troy had the most competitive housing markets in southeast Michigan, Schneider said she expects several smaller communities to emerge as desirable spots.
"New Baltimore is emerging as a market to watch with its waterfront park and several local bars and restaurants," she said, citing amenities like The Social Wave, a downtown district where businesses are allowed to sell alcoholic beverages to-go and outdoor consumption is permitted.
Schneider also pointed to Clarkston, Lake Orion and Independence Township in northern Oakland County, which may become more popular with home buyers looking for more space. And for those looking for a more affordable location, she said Hazel Park, Redford Township and Roseville "all offer stable markets and good housing stock."
A hot real estate market may mean appreciating property values for area homeowners, but it can be a mixed bag, Schneider cautioned.
"The upside is that homeowners build equity, sellers have more leverage, and neighborhoods that attract strong buyer demand often benefit from continued home improvements," she said.
But higher property values create an affordability challenge.
"When prices rise quickly, it becomes harder for first-time buyers and younger households to get in," Schneider said. Taxes, insurance and home maintenance costs can also rise with home values.
"The healthiest markets are the ones that grow modestly without pricing people out."