If you’re thinking about putting your house on the market, it’s important to get a clear picture of how things are shaping up in real estate right now. The dramatic shifts that happened during the pandemic have started to settle, but the market still comes with its own set of challenges.
To begin with, mortgage rates have been a major factor. As recently as October 2023, interest rates hit levels not seen in over two decades. While rates have come down a bit since they crossed 8 percent, they’re still high. According to a February 2025 update from Bankrate’s survey of national lenders, the average 30-year fixed mortgage rate sits at around 7 percent. That’s a level that can make monthly payments feel steep and, in turn, keeps many would-be buyers out of the market. That’s not exactly what you want to hear if you’re planning to sell.
Adding to the pressure, home prices have seen significant growth. In June 2024, the national median sale price reached a record-breaking $426,900. Although prices dipped a little since then—mainly due to the usual seasonal changes—January still posted a high median of $396,900. That marked 19 months in a row of annual price increases. While rising prices may seem like good news for sellers, the reality is buyers also need to afford those homes, and higher interest rates are making that harder.
So, with all this in mind, is now the right time to sell your home? The answer depends on your goals, your timeline, and what’s happening in your local market. Here’s what to consider as you weigh your options.
Is Now a Smart Time to Put Your Home on the Market?
If public sentiment offers any clues, now could still be a good time to sell your home, even with market shifts. Recent surveys show that a strong number of people believe it’s a favourable moment to list a property.
Still, your decision should be based on what’s happening in your local market. Housing trends can vary a lot from one area to another. Some locations are continuing to see price growth, which could create good selling conditions. In other areas, it might make more sense to wait until interest rates ease and more buyers return to the market.
How To Know When It’s The Right Time To Sell Your House
While spring and summer often bring more buyers into the market, timing a home sale goes beyond just picking a season. Many personal and financial factors can help you decide if now is a good time to move on. Understanding these can help you make the most of your decision.
When interest rates attract buyers
Although rates are currently higher, lower interest rates typically encourage more buyers to start their search. When more people are looking, competition can heat up and push prices higher, which works in the seller’s favour.
When there are fewer homes for sale
A tight housing market means buyers have fewer options, which often leads to quicker sales and stronger offers. With limited inventory, sellers are in a better position to negotiate and close faster.
When you’re thinking about a smaller space
Switching to a smaller home can ease your financial burden, especially if you’re spending too much on maintenance or unused space. For some, downsizing becomes a necessary step—like when stairs become a daily challenge.
When you’re moving for a new chapter
Whether it’s for a job in a different state or a dream retirement spot, needing the equity from your current home makes selling a must. If you’ve got a plan for where you’re heading next, that’s a strong sign it’s time to make the move.
When Is It Better To Hold Off On Selling Your Home?
There are times when waiting to list your home could be the smarter choice. Here are some situations where it might be best to pause before putting your property on the market:
When interest rates are climbing
Higher mortgage rates often reduce the number of buyers who can afford your asking price. Selling a home comes with costs, so if you are unlikely to reach your price goal, waiting could help you avoid losses.
If you’ve recently refinanced your mortgage
Selling shortly after refinancing may not be financially wise. The fees and closing costs linked to refinancing can add up, and selling too soon could result in a net loss rather than a gain.
If you’re planning to upgrade
Moving into a larger home during a competitive market might stretch your budget. Make sure your finances are ready for a bigger purchase. Tools like affordability calculators can help you assess whether now is the right time to take that step.
If your home needs work
A home in poor condition can turn off potential buyers or lower your sale price. Tackling key repairs before listing can help your home make a stronger impression and attract better offers.
If you don’t have a clear next step
Selling without a solid plan can backfire. It’s important to know where you’re headed and how you’ll use the proceeds. Without a next move in place, it might be better to wait until you have a clear direction.
Understanding How Real Estate Commissions Work Today
You might have heard that sellers are no longer expected to cover the buyer’s agent commission. So, does that mean now’s a better time to sell? Possibly.
Traditionally, home sellers paid the commission fees for both their own agent and the buyer’s agent. But recent changes have shifted how this works. Following a major federal lawsuit settlement involving real estate organizations and brokerages, new rules rolled out last summer. Now, commission responsibilities are negotiable. Buyers may need to pay their agents directly, which could mean lower costs for sellers. It’s important to speak with your listing agent about this early on. Make sure your agreement clearly outlines who’s covering each commission and exactly how much will be paid.
Should You Sell Your Home Before a Market Slowdown?
While the chances of a major economic slowdown aren’t as high as they once were, it’s still smart to think ahead. One key question to consider is this: Is it a good idea to sell your home during a downturn, or even just before one begins?
The best answer depends on your unique situation. If you think a slowdown is coming, it may be wise to sell sooner rather than later, says a real estate expert . Selling your home during a downturn might actually work in your favor if you’re planning to move into a smaller place or start renting. That shift could help lower your living expenses, and the money from the sale could be used for retirement, investing, or even taking a break to recharge.
Keep in mind that slowdowns often lead to job cuts and tighter budgets. This usually means fewer people are in a position to buy. In most cases, more buyers can afford to purchase and qualify for a mortgage before a downturn than after it hits.
Smart Ways To Prepare Your Home For A Successful Sale
If you’ve decided it’s the right time to sell your home, there are several steps you can take to make sure you get the best deal possible.
Work With A Local Real Estate Expert
A skilled local agent can be a valuable asset, especially when the housing market is moving fast or feels uncertain. Take time to meet with a few agents in your area and get referrals from people you trust. An experienced agent will help you build a strategy to get your home ready and present it in the best possible way.
Handle Repairs Before Listing
To attract strong offers, make sure your home is in good condition. You only get one shot at a first impression. Walk through the home with your agent and identify what should be fixed or updated before listing.
Clear Out And Style The Inside
A clean and simple interior helps buyers see the space clearly. Try to remove personal items, clutter and any extra furniture that makes rooms feel smaller. If needed, hire a home stager to show how each room can be used effectively. This can make a big difference in how buyers see your home.
Boost The Exterior Appeal
What buyers see first matters. Freshen up the outside of your home with easy upgrades like trimmed landscaping, clean walkways or a new coat of paint on the front door. These small changes can have a big impact.
Explore Other Selling Options
If you want to sell quickly or avoid the traditional process, companies that buy homes for cash might be an option. These services can make fast offers, sometimes within a day, and close in just a few weeks. Keep in mind, though, you may get less money than you would through a standard sale. The tradeoff is speed and ease.
What To Consider Before Selling In A Hot Market
Selling your home when the market is strong can feel like a no-brainer, but it’s important to look at the full picture before you commit. While rising prices can bring in higher offers, you also need to think about what comes next. If you’re planning to buy again in the same market, you might be faced with similar high prices, which could cancel out the gains from your sale.
Timing is also key. Selling now might mean paying more for your next property, especially if interest rates remain high. Beyond that, don’t forget the hidden costs of selling, such as agent commissions, repair work, staging, moving fees, and potential closing costs. These can eat into your profits. Before jumping in, ask yourself if the move makes sense for your lifestyle and long-term plans. Talk to a local real estate expert who can help you compare current trends with your personal goals.
How To Maximise Value When Selling In A Competitive Market
Even in a strong market, getting the best price for your home takes more than simply listing it. To rise above the competition, focus on highlighting what makes your home stand out. Begin by clearing out clutter and staging each room to showcase its space and function. Fix anything that could raise concerns during a walkthrough—homes that feel well-maintained tend to attract stronger offers.
Working with a trusted local real estate company can make a big difference. Local experts know how to price homes based on nearby trends and buyer demand. They’ll guide you through every step, from setting the right asking price to recommending repairs that add value. A good team will also market your home with high-quality photos, compelling descriptions, and exposure across the right channels. In a fast-moving market, timing counts. With local knowledge and a smart strategy, you can make the most of current conditions and close with confidence.
Why Pricing Strategy Matters More Than Ever In A High Market
Setting the right price is one of the most powerful tools when selling a house in a competitive housing market. It might be tempting to aim high, especially if neighbouring homes are getting top dollar. But overpricing can actually turn buyers away, causing your listing to sit on the market longer than necessary. That delay often leads to price cuts, which can weaken your negotiating position.
A smart pricing strategy starts with local data. A real estate company that knows your area can analyze similar sales, buyer activity, and current trends to help you set a price that attracts attention while still protecting your profit. The goal is to generate interest quickly and potentially spark multiple offers. When buyers feel a sense of urgency, you gain leverage. This is especially true in high markets where well-priced homes sell fast. Getting pricing right from day one sets the tone for a smoother, more successful sale.
Conclusion
Deciding whether to sell your home in a high or shifting market depends on more than just price trends. It’s about understanding your financial goals, timing, and what’s happening in your local area. While elevated home values and buyer demand can work in your favor, rising interest rates and limited affordability also pose real challenges. That’s why preparation is key. Working with a trusted local real estate company, pricing your home right, and making smart updates can help you attract strong offers. Whether you’re looking to downsize, relocate, or take advantage of equity gains, having a clear strategy puts you in the best position to succeed. If you’re unsure, start by speaking with a local expert who can guide you through the process and help you move forward with confidence.
FAQs
Can I get the best return by selling in a hot market?
Yes, you can often secure higher offers and faster sales during a hot market. With strong demand and low inventory, buyers compete more aggressively. Just make sure you factor in your next move—if you’re buying another home, those higher prices may impact your gains.
Should I sell now or wait for interest rates to drop?
If you’re ready, selling now can work in your favor. Waiting for rates to drop may bring more buyers, but you could miss out on today’s high home values. Sell when the timing fits your goals and the numbers make sense.
How do I know if my local market has peaked?
Watch for signs like rising home prices, low inventory, and quick sales. Contact a local real estate company to get a clear picture—they know the current trends and buyer demand in your area.
What risks come with selling in a high market?
You risk overpricing your home, which can scare off buyers. High mortgage rates may also limit who can afford your home. If you’re planning to buy again, you could face the same high prices on the other side of the deal.
Is it smarter to sell before or after the market cools down?
If your home is ready and you have a solid plan, selling now could give you a strong return. After the market cools, buyers may gain more power, and you could lose the advantage. Sell when your situation supports it, not just when the market shifts.
