December '25 Market Report
Why Inventory is Rising Despite Fewer Listings
If you’ve been following the housing market, you may have noticed that more homes are available for sale now than a year ago — even though fewer new listings are coming on the market and sales activity has only dipped slightly. That can feel confusing at first.
Compared to last December, the number of homes for sale in Southeast Michigan is up about 9%, while new listings this year are down roughly 4% and home sales are down just 1%. The explanation is simpler than it sounds. Inventory doesn’t rise only when more homes are listed. It also rises when homes take longer to sell.
In today’s market, buyers are taking more time to make decisions, and homes that are in average or below-average condition don’t sell quickly are staying on the market longer instead of selling right away or being taken off the market. The average market time for a home that accepted offers in November was 34 days, while average days on market for an active listing that has not yet accepted an offer is 96 days. When listings remain available for longer periods, they begin to add up — even if fewer new homes are being listed.
This increase in inventory is not the result of a sudden surge in new homes for sale or a wave of deals falling apart. Instead, it reflects a shift in pace. Well-priced, move-in-ready homes still attract strong interest, while homes that are overpriced or need updates are sitting longer.
This pattern is typical of a housing market transitioning away from the unusually fast conditions of the past few years and toward a more balanced, normal pace.
