Hoping to sell your house in 2025? Here's what to expect.
Will the housing market favor buyers or sellers this year?


Since the start of the pandemic, the housing market has posed challenges for buyers and sellers alike. While home buyers have been stuck with steep mortgage rates and rising home prices, sellers have struggled with questions like when buyer demand will be in the right place and whether to ditch a lower mortgage rate for a higher one if they need to rebuy.
If you are wondering whether 2025 will finally be your year to sell, there are a handful of circumstances to consider that "will shape whether the real estate market offers favorable conditions in the year ahead," said Kiplinger. These range from "economic ripple effects of the presidential election to evolving buyer demand."
By staying "up to date on market trends at both the national and local levels and working with trusted professionals," added the outlet, sellers can better gauge whether 2025 is the right year for them to list.
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Will the housing market favor buyers or sellers this year?
It could be a bit of both. "More homeowners are expected to list their homes and return to the housing market in the new year as mortgage rates stabilize and home price growth slows," said Investopedia, which could give sellers "an easier time finding a buyer." In years past, buyers' hesitancy to buy due to factors like steep rates, rising prices and policy uncertainty amid the 2025 election may have winnowed the pool.
However, the "improved inventory" as the housing shortage eases a bit could also "mean more competition" for those looking to sell, said Kiplinger. If competition does end up increasing, that means "sellers must be flexible going into 2025, as buyers will start to have the upper hand" and be able to "demand price cuts or concessions," said Investopedia.
Where are home prices expected to head in 2025?
Home prices in 2025 will continue to inch up — but not as quickly as they once did. While "in 2024, prices rose by 4.5% year-over-year," in the new year, the National Association of Realtors "predicts a more modest increase of about 2%, with the median home price expected to reach $410,700," said Kiplinger.
This may mean lower hopes for the whopping profit some sellers landed in times of peak demand. On the other hand, steep prices amid a high interest rate environment can also quickly winnow the buying pool. That is because higher prices "obviously require buyers who can afford the purchase, and interest rates are making that harder," which can lead to houses sitting on the market longer as buyers contemplate their purchase, said Bankrate.
Is 2025 going to be a good year to sell a home?
If you are going by popular opinion, "now may still be a good time to sell despite the evolving market," said Bankrate, citing Fannie Mae’s November 2024 Home Purchase Sentiment Index, which found that "almost two-thirds of respondents — 64% — feel it is a good time to sell."
The market you are in will also influence whether or not it makes sense to list this year. "In some areas, selling now is the right thing to do because prices are still climbing. In other markets, it might be best to wait to sell until interest rates come down and stay down, which will spur sales once again," said Katie Severance, a realtor with Douglas Elliman and the author of "The Brilliant Home Buyer," to Bankrate.
Your circumstances undoubtedly matter, too — and in some cases, may even trump market dynamics and the selling environment. If you need to relocate or are in a place where you are ready to downsize, for example, it could make sense to simply make the leap and sell, so you can find more suitable accommodations.
Also take into consideration your plan for where you will go next — and make sure you actually have one. If you will need to apply for a mortgage, then it is also important to consider whether mortgage rates are lower or if they are on the rise. And especially if you are not in a rush, do not underestimate the impact of making sure your house is in good shape to sell: "to land the best offer for your home, know what needs fixing first," said Bankrate, and remember the importance of curb appeal.
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Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.
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