Sellers across the U.S. are optimistic heading into this year’s Best Time to Sell with 70% of potential sellers thinking it is, according to a new survey from Realtor.com® out today.
With the best time to sell approaching, sellers are optimistic and with a still-sizable nationwide housing shortage, there’s good reason to be. Recent research shows that the housing supply gap would take 7.5 years to close nationwide and much longer in some regions. At the same time, we’ve seen pronounced shifts in financial markets as the economy adjusts to new policies. It’s always a good idea to work with an expert, and this is even more true at a time when housing markets are evolving to reflect broader economic conditions.
Though the housing market is challenging, today’s sellers are optimistic about selling this year because of their ability to take advantage of the increased value of homes and an expectation that buyer-offers will meet their asking price. Most sellers have been thinking about selling for more than a year, and plan to move forward with their sale due to life’s demands.
Nearly 80% of potential sellers are considering selling out of necessity, including the need for more or less space, for family, life events, work, or because they can no longer afford their home. Roughly one-third (34%) need more space, 25% need to downsize, 21% need to move for family, 18% for a life event, including marriage, kids or divorce, 15% need to move for work including return to office or new job, and 10% can no longer afford their current home. However, the top reason for selling was all about location, with 46% selling to find a different community.
Potential sellers are optimistic and are taking steps to sell
Potential sellers are feeling good about the selling process, with 81% thinking they’ll get their asking price or more, 75% thinking it will take the average time or shorter than usual to sell, and 63% thinking they won’t have to make significant or unexpected concessions. While some markets, such as in-demand areas in the Northeast and Midwest, support this optimism, sellers in the well-supplied South and West could find more seller competition than they bargained for. Today’s market is more balanced than in years past, meaning sellers and buyers will need to work together to come to mutually-beneficial terms.
Almost every potential seller (96%) has taken at least one step to prepare for a home sale. The most common steps have been in the research phase, with 71% of potential sellers checking the value of their home and 61% researching prices in their neighborhood.
One in three potential sellers (38%) has made some type of home improvement to prep their home for sale. The most common renovations include light renovations such as repainting, updating fixtures and light landscaping, and were completed by 70% of those who did home improvements. Nearly two-thirds, 65%, of potential sellers who did renovations fixed things that might be an issue on an inspection, and more than half (59%) completed a major renovation such as redoing a kitchen or bath.
Six out of 10 potential sellers have taken actionable and concrete steps to start the listing process. The most common step has been to contact a real estate agent (36%), followed by completing an inspection on the home being sold (27%), and listing a home for sale (22%).
Sellers have been waiting to act and many feel ‘locked-in’ by still-high mortgage rates
Almost two-thirds of potential sellers (61%) have been thinking about selling their home for more than one year, with the largest share (46%) thinking about selling for one to two years. Only 5% of potential sellers have been thinking about selling for more than three years.
The holding pattern feels all-too-familiar as homeowners wait out high mortgage rates, hoping for some relief. Half of those who have a mortgage feel ‘locked in’ due to high mortgage rates that remain well above the current interest rates that many homeowners have on outstanding mortgage debt, and that effect grows for those who have been thinking about selling for more than a year. After all, roughly two-thirds (66%) of potential home sellers plan to buy another home after selling, which means their next mortgage will likely have a higher rate.
Over half (55%), of those who have been thinking of selling their homes for more than one year feel locked in due to mortgage rates.
Why sell now? More than three out of four (78%) potential sellers think interest rates will either stay the same or increase in the next 12 months, suggesting that waiting may not be rewarded. For potential sellers who think rates are going to increase, 43% say this expectation increases their likelihood to sell, and 20% say a rate increase would decrease their likelihood to sell. Interestingly, 69% of potential sellers who think rates are going to decline say this expectation increases their likelihood to sell. This suggests that potential sellers are motivated by interest rate changes and interest rates impact potential sellers likeliness to list.
Potential seller attitudes differ by region, much like housing trends
Potential sellers in the Northeast are considerably more likely to think it’s a good time to sell a home (80%) compared to the West (72%), South (69%) and Midwest (65%). The optimism in the Northeast tracks with still-competitive housing conditions in the region. According to Realtor.com® research the Northeast is the most undersupplied region and saw the slowest active and new listing growth year over year likely contributing to seller optimism in that region.
Potential sellers in the West are more likely than potential sellers in the South, Midwest and Northeast to think they will get more than the asking price. Though inventory levels have improved significantly in the West, the California contingent of the region consistently sees high levels of market competition, which can drive up sale prices.
Ultimately, sellers are largely optimistic about selling their home, due in large part to the significant equity homeowners have accrued over the last 5 years. Inventory is up year-over-year, but still well below pre-pandemic levels nationally. The strain of limited inventory is especially intense in relatively affordable, in-demand markets in the Northeast and Midwest. Meanwhile, more construction and an uptick in existing sellers in the South and West have led to more balanced housing market conditions. Sellers should work with an expert and be strategic this selling season, as buyers may be especially particular considering the expense required to purchase a home in today’s market.
Methodology
Online survey conducted on March 9, 2025 – March 14, 2025 among n=801 homeowners who are thinking about selling their home in the next 12 months.