Detroit, MI 48238 Real Estate Market Report

ZIP Code: 48238
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the real estate market in Detroit, MI (ZIP: 48238) is characterized by a median sold price of $74,000, reflecting a significant gap from the median listing price of $83,500. This discrepancy suggests potential pricing friction, indicating that sellers may need to adjust their expectations to align with buyer sentiment. The market has seen a notable decline in average home values, contributing to a neutral market temperature that indicates a balanced environment despite the recent volatility in pricing trends.

Transaction activity appears to be moderate, with median days on market at 209 days, indicating slower sales velocity. Elevated inventory levels are present, suggesting excess supply relative to sales activity, which may further pressure prices downward. The overall market remains relatively stable, although worsening local affordability metrics could impact future buyer demand and market dynamics.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Detroit MI 48238 area around 5.875% are notably lower than the 6.18% average seen in late January 2026, presenting a potential cost-saving opportunity for property owners.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $74,000 indicates a significant gap from the median listing price of $83,500, suggesting potential pricing friction for sellers.

2. With median days on market at 209 days, the market is experiencing slower sales velocity, which may indicate a need for price adjustments to stimulate activity.

3. Elevated inventory levels suggest excess supply relative to sales activity, which could pressure prices downward in the near term.

4. The median market rent of $1,629 reflects a slight decrease in rental rates, contrasting with localized short-term rental increases in the area, indicating mixed rental market dynamics.

5. Current 30-year fixed mortgage rates around 5.875% present a cost-saving opportunity for property owners, potentially enhancing buyer affordability in a challenging market.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.