Despite the market’s ups and downs this year, 70% of potential home sellers believe that 2025 is a good time to sell. According to a recent survey from Realtor.com, today’s sellers are optimistic about selling in the months ahead because of their ability to take advantage of increased home values and an expectation that buyers’ offers will meet their asking price.
While the survey reveals that many sellers still feel locked in by low interest rates they received during the pandemic years, a majority (79%) 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. Some 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 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.
Nearly every potential seller (96%) has done something to begin preparing 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%).
The survey also revealed that nearly two out of three 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.
One major contributing factor making people sit on the sidelines is mortgage rates. After all, roughly two-thirds (66%) of potential home sellers plan to buy another home after selling, according to the survey. Half of those who have a mortgage feel ‘locked in’ due to high mortgage rates, and that effect grows for those who have been thinking about selling for more than a year. 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.
More than three out of four (78%) potential sellers think interest rates will either stay the same or increase in the next 12 months, says the survey. 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.
If you’re considering putting your home on the market, be sure to contact a local real estate professional who can advise you based on specific market conditions in your area.
