Mortgage rates experienced dramatic spikes and dips throughout 2024, with the average 30-year fixed mortgage rate peaking at over 7% during April and May. While rates dipped slightly in the third quarter, they climbed back into the upper 6% range, reaching 6.91% in early November — the highest level since July.
Despite the Fed rate cuts in September and November, mortgage rates have stubbornly hovered around 6%. According to experts, a third rate cut made in December is unlikely to significantly impact mortgage rates, as it’s relatively small, and lenders may have already accounted for it in their current loan offerings.
After a year of wild fluctuations, many homeowners are left wondering what 2025 will bring. The big question on everyone’s mind: should I sell my house next year?
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If your low mortgage rate has kept you from moving or the inventory in your desired neighborhood has been wholly unimpressive, we’ve got good news for you — there are several reasons to be optimistic about the 2025 housing market. Experts are predicting rebounding home sales, stabilizing mortgage rates and home prices, and renewed buyer demand.
That said, sellers should be realistic about the current market. While conditions are improving, sellers no longer have the upper hand in some locations.
“Sellers need to understand that the extreme sellers market of ‘20 – ‘21 with multiple, cash offers over asking is over,” says Richard McKinney, a top agent from Port St. Lucie, Florida, with 26 years of experience.
According to property data site CoreLogic, home prices in the U.S. increased by 3.4% in October 2024 from the same month last year. But McKinney says he’s seen prices coming down in higher price ranges, and in some cases, properties are taking months to sell. He advises, “Sellers and agents need to be out in front of price, marketing, and staging.”
Ahead, we tackle the big question on many homeowners’ minds: “Should I sell my house in 2025?” We break down the pros and cons, drawing on insights from the latest housing market forecasts and seasoned real estate agents.
Pros for selling your house in 2025
Selling your home in 2025 offers promising opportunities. With mortgage rates stabilizing and home prices continuing to rise moderately, sellers can benefit from a more predictable market. Additionally, the increasing number of buyers using cash reduces financing delays, streamlining transactions. These favorable conditions can help sellers maximize profits while navigating a steadier and more confident housing market.
More stable mortgage rates will get buyers off the sidelines
Existing-home sales rose by 3.4% month-over-month in October 2024, according to the National Association of Realtors (NAR). This is a 2.9% growth from a year ago, the first year-over-year increase in more than three years.
At a recent industry conference in Boston, NAR Chief Economist Lawrence Yun explained the recovery in housing demand, noting that mortgage rates may remain steady.
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions.”
He adds, “Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
Stable mortgage rates encourage buyers to enter the market, as they feel confident in their budget without the concern of sudden rate changes. This results in quicker, more decisive offers. Similarly, with more predictable market conditions, you can confidently set an accurate price for your home, making the selling process smoother.
Home prices will stabilize but remain high
According to CoreLogic, home prices climbed 3.4% in October 2024 compared with the same month last year. The current nationwide housing shortage, estimated at 4.4 million units, drives prices up.
NAR forecasts a 2% increase in the median home price, reaching $410,700 in 2025. Rising home prices allow sellers to list and sell their homes at high prices potentially increasing profit margins. Moreover, you’ll see equity growth, enabling you to sell for a great profit, pay off existing mortgage balances, and use proceeds for your next home purchase or investment.
Even though the figures point to a favorable market condition for sellers, some may be tempted to wait for prices to peak. Real estate agent Dinara Sammartino of Lyndhurst, New Jersey, offers a word of caution: “They think the seller’s market will get better, they keep holding on, and it’s going in the other direction,” she says. “They are holding out for more, but it may never come, and they may miss the best time now.”
Cash will still be king
Buyers capable of making all-cash offers are doing so to avoid paying thousands of dollars in interest over the lifespan of their loan. Cash offers are great for sellers because they are less risky and shorten the buyer’s timeline for closing on a house.
According to real estate data company ATTOM, all-cash deals made up nearly 37.2% of single-family home and condo sales in the third quarter of 2024.
With experts anticipating mortgage rates to hover around the upper 6% range in 2025, cash transactions are likely to remain a popular choice among buyers.
Sellers looking to secure a cash deal instead of a traditional sale involving a mortgage might benefit from HomeLight’s Simple Sale. Once you’ve answered a few questions, we’ll provide you with a competitive, all-cash offer for your home within 24 hours. There are no additional fees, agent commissions, or prep work involved. Plus, you can close in as few as 10 days.
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Cons for selling your house in 2025
2025 brings a new set of challenges that sellers should consider. High housing inventory means increased competition, making it harder to stand out in the market. Additionally, elevated mortgage rates may limit affordability, narrowing the list of potential buyers and slowing sales. These factors could result in longer listing times, lower offers, or the need for seller concessions to close deals.
Projected high inventory levels demand strategic decisions from sellers
While there has been a national housing shortage, inventory levels have been improving recently. According to NAR, the total housing inventory registered at the end of October was 1.37 million units, increasing by 0.7% from September and 19.1% from one year ago (1.15 million).
Unsold inventory sits at a 4.2-month supply at the current sales pace, a slight decline from 4.3 months in September but an increase from 3.6 months in October 2023.
In a seller’s market, inventory is low, typically less than six months, and demand exceeds supply, giving sellers the advantage. In a buyer’s market, inventory exceeds six months, and buyers have more options. Meanwhile, a balanced market typically has about five to six months of inventory, where supply and demand are relatively equal, and neither buyers nor sellers have a clear upper hand.
The current 4.2-month supply suggests the market is leaning slightly toward a seller’s market, but the shift toward higher inventory levels could signal a transition toward more balance.
NAR anticipates increased housing inventory in 2025, driven by new construction projects. Housing starts, the metric for new home construction, is projected to reach 1.45 million units over the next couple of years, approaching the historical average of 1.5 million units annually. In addition, inventory will benefit as more homeowners list their properties, encouraged by stabilizing mortgage rates and improving market conditions.
Similarly, from the perspective of real estate agents, housing inventory is on the rise, as shown in HomeLight’s recent survey of 750 top professionals in the country. In fact, 59% of agents report increasing inventory in their markets, while only 8% see a decline.
Rising inventory signals increased competition, potentially leading to longer time on the market for properties and giving buyers greater negotiating power. It’s then important for sellers to adopt a more strategic approach, pricing their homes competitively and ensuring they are visually appealing and well-maintained to attract buyers.
Bob Weibrecht, a top real estate agent in Arnold, Missouri, advises sellers to be flexible to avoid deterring potential buyers.
“Sellers are listing their homes as ‘as-is’ and are unwilling to perform local occupancy inspections,” says Weibrecht. “Additionally, they are informing buyers they will not make any repairs or provide concessions after the buyer inspections. By doing this, these sellers are limiting their buyer pool to individual investors and investment companies who wish to buy and flip.”
As shown in HomeLight’s Top Agent Insights for End of Year 2024, it’s important for sellers to be more accommodating of buyer requests to secure a deal. 52% agree that offering seller concessions and credits helps sell homes in a high-interest mortgage environment. 49% suggest making additional home repairs or upgrades.
Affordability remains an issue for many buyers
While mortgage rates in 2025 may stabilize compared to the volatility seen in 2024, they are still expected to hover around 6%. Higher interest rates increase monthly payments, reducing how much buyers can afford to borrow. This could limit your pool of eligible buyers.
However, it’s worth noting that 45% of agents believe interest rates will decrease, making it easier for buyers to enter the market. Nonetheless, with the current borrowing costs still elevated, you may face longer listing times and fewer offers compared to the fast-paced, low-rate market of recent years. This makes it more important than ever to approach the timing of your sale strategically.
The “ideal time” to sell can vary significantly based on your location, market trends, and shifts in mortgage rates. To determine the best time to list your home and maximize your chances of a successful sale, use our Best Time to Sell calculator for personalized insights tailored to your market.
Some sellers will have to grapple with high mortgage rates themselves
Home sellers who are seeking to buy a new property with financing might prefer to wait until mortgage rates decrease and home sales activity rebounds. Of course, there’s always the option of buying now and refinancing later; it all comes down to budgetary constraints and personal preferences.
“Buyers think that if they wait to buy, some miraculous interest rate fairy is going to float down and give them a 3% rate again,” says Peter Derry, a top agent in Charleston, South Carolina. “The best thing to do is buy ASAP, within your means, as you start to pay off the home sooner.”
The chart below showcases the mortgage rate fluctuations in 2024.
2024 average 30-year mortgage rate
| January | February | March | April | May | June |
| 6.64% | 6.78% | 6.82% | 6.99% | 7.06% | 6.92% |
| July | August | September | October | November | December |
| 6.85% | 6.50% | 6.18% | 6.43% | 6.81% | 6.60%* |
Source: Freddie Mac (*Interest rate as of Dec. 15, 2024)
Strategies to sell your house in 2025
Work with a top agent for a faster, more profitable sale
“What clients truly require is a seasoned real estate agent who has navigated fluctuating markets, offering tangible data and expertise that novice agents lack,” says Christine Peyton, a top agent in Cherry Hill, New Jersey, who has sold 100% of the listings she’s taken on.
Connecting with an experienced agent can help you better understand the conditions in your local market and determine whether it’s a good time to put your house up for sale. HomeLight’s agent matching platform is free to use and connects you with multiple top agents so you can choose the professional who best suits your needs.
Connect with a Top Agent
Thinking of selling? Connect with a top agent in your area who can help sell your home faster and for more money.
An agent will guide you through the sales process, including pricing and marketing your home, negotiating with buyers, and connecting with contractors to make repairs and provide various services.
Invest in budget-friendly upgrades to get your sale moving
“Taking care of even the most minor of things can have a big impact on the psyche of a buyer as they walk through a property,” says Carlos Lobato, a top agent in Miramar, Florida, with 20 years of experience.
Even if you don’t have the budget to replace your garage doors, you can improve curb appeal by updating the mailbox or house numbers, or simply laying down a new doormat.
HomeLight’s Top Agent Insights Report revealed that improved curb appeal and enhanced outdoor and garden spaces were the second most important selling points for homes in 2024.
When it comes to your home’s interior, Deidre Quinn, an award-winning agent in the Philadelphia area, suggests giving your space a fresh coat of paint before putting it on the market.
“It’s one of the least expensive and one of the top things I recommend to my clients,” she says. Choose one neutral color so prospective buyers can envision the home with their own furnishings.
Other quick and budget-friendly upgrades include replacing old showerheads, painting kitchen cabinets, and installing a smart thermostat.
Declutter and deep clean to make your house shine
Quinn advises sellers to pack up a lot of their belongings so buyers can visualize themselves and their possessions in the house. Rooms also photograph better when they aren’t overflowing with furniture and knickknacks.
Begin decluttering by sorting through closets and cabinets. Box up what you don’t need on a daily basis and donate clothing you haven’t worn in years. Throw out expired cans or packages of food that have been hiding in the corners of your pantry. You’ll be amazed at how much extra space you’ll have once you’re finished.
Give your house a thorough cleaning to make it sparkle. Don’t forget to wipe down light switches, door handles, and outlet covers. Take out a broom to sweep storage areas such as the attic, basement, or garage. If you’re too busy or can find a million excuses not to clean, hire a professional cleaner for a rate of $25 to $80 per hour.
Go for it if selling will help achieve your goals
While market challenges may keep some homeowners from selling in 2025, others may have to move for various reasons. Maybe you scored a new job in a different city or require a bigger house to accommodate your growing family.
If you’re in a similar situation and need to move into a new place quickly, HomeLight’s Buy Before You Sell program allows you to unlock your home’s equity for the purchase of a new home. You’ll be able to buy your new home without a home sale contingency and sell your home vacant with less hassle.
For those who are still on the fence about selling their homes, Quinn recommends asking yourself these questions: Why are you moving? Is moving in line with your goals and the quality of life you want to achieve?
Your responses will help determine the answer to the question, “Should I sell my house in 2025?”
Writer Julie Guthmann contributed to this article.
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