When it comes to selling your home, fluctuating interest rates, trends in your local real estate market, and even the time of year can have an impact. So let’s go through four things to consider if you’re wondering, “Should I sell my house now or wait?”
The highlights:
- Changing interest rates can affect the homebuying market, with lower rates potentially encouraging more prospective homebuyers.
- Checking the real estate inventory—meaning the number of houses currently listed for sale—in your market can help you price your home for sale.
- Historical data shows that sellers who list their homes in the spring or summer tend to make higher profits—but life events may require you to sell on a different timeline, and that’s OK.
1. Look at current mortgage rates.
When it comes to selling (or buying) a home, interest rates have a big influence. When mortgage rates are low, there is often an increase in homebuying and home selling activity as buyers try to save money by locking in homes with lower monthly mortgage payments. That can benefit sellers, too. More buyers can mean more competition, which may help you sell your home quicker and at a higher price.
Rates were high in the fall of 2023, with the average rate for a fixed 30-year mortgage climbing above 7.5% for the first time in years. But as 2023 ended, rates fell below 7.5%, with indications from the Federal Reserve that more cuts are possibly coming in 2024.Disclosure 1
Rates likely won’t be near the January 2021 record low of 2.65% anytime soon.Disclosure 2 But if you’re thinking about selling your home, keeping an eye on changes in mortgage rates may help you decide when you want to list your house on the market.
2. Gauge market demands.
In real estate, inventory refers to the total number of properties that are for sale in a particular market. A low inventory can contribute to what’s known as a seller’s market, where demand exceeds supply and sellers may have more pricing power. In this scenario, sellers may receive multiple offers with potential buyers offering more than the asking price.
In a buyer’s market, supply outpaces demand and buyers have more options—in part because of a higher inventory of homes for sale. In this scenario, sellers may have to be more flexible. That’s important to consider when pricing your home for sale. A buyer’s market, when you’re likely to see fewer offers, may not be the time to shoot for your highest price point.
Market demands can also depend on your location. If your house is in an especially hot market, it may sell quickly regardless of current mortgage rates and national trends.
There’s another reason real estate agents love to say “location, location, location.” Consider what’s happening in your local market as well as your specific neighborhood. Demand for a townhouse in an up-and-coming neighborhood in a major city may be different than for a single-family home in a suburb 30 minutes away. Try to find a real estate agent who knows your local market well—including your specific zip code.
3. Check the calendar.
Traditionally, late spring and early summer have been the hottest times to buy and sell a home—and national data shows that homes are more likely to sell above market value in April, May, June, and July.Disclosure 4
Homebuying activity typically peaks in the late spring and throughout the summer for a variety of reasons. The summer tends to be moving season for most buyers and sellers since it’s between school years. Families may have more time on their hands since school is out and the holidays are well behind us. And the days are also longer, which can make it easier to check out different places.
So if you’re looking to sell your home quickly and net a higher asking price, you may want to target these warmer months.
4. Evaluate your personal circumstances.
Sometimes life happens, and you simply can’t wait to sell your home. You may need to expedite your move because of a growing family, a new job, or loss of income. Whatever the case, know that it’s perfectly fine to sell your home when you need to. In these instances, it’s also helpful to work with a real estate agent to set a realistic price point and promote your home’s listing.
Whenever you decide to sell your home—and for whatever reason—remember to make time for self-care. Moving is consistently rated as one of life’s most stressful events—ahead of going through a breakup, getting married, or having kids.Disclosure 6
“Being prepared is key,” says Bright Dickson, senior purpose advisor at Truist. “Get organized, lean into your resources, and just know it’s a process that takes patience and flexibility. You will get through it.”
Next step suggestions:
- Start keeping track of mortgage interest rates.
- Look at listings in your neighborhood to size up the competition—and their price points.
- Speak with a few real estate agents to learn more about the nuances of your market and to get an idea of a price point for your home.
