Are you planning to sell your home in 2025? Whether it’s to upgrade or downsize, most homeowners want to sell as quickly as possible once they list — especially if they’re looking to buy a different house and don’t want to get stuck with two mortgages.
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Here are five factors that will influence how long it takes to sell a home in 2025.
Interest Rates
Interest rates are one of the top factors influencing how long it takes to sell a home.
Higher interest rates mean a higher mortgage payment. As monthly payments increase, the number of buyers available decreases. A $250,000 30-year mortgage comes with a monthly payment of $1,663 at a 7% interest rate. Dropping the interest rate to 5% creates a new monthly payment of $1,342. When interest rates are low, you will have access to a larger buyer pool.
Charissa Bright, founder of Bright Buys Houses, explained, “If rates go up, fewer people will want to buy homes, which will slow the market. Higher interest rates might mean fewer offers, but sellers can price their homes right or offer perks like paying closing costs to attract buyers.”
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Inflation
“Inflation is going to be a big one,” said Adam Hamilton, CEO of REI Hub.
Central banks increase interest rates as inflation rises to cool down the economy and control price growth. Once interest rates are adjusted upward, inflation starts to decrease.
Inflation also impacts your buyer pool. For one, rising interest rates make it more challenging to qualify for home loans. In addition, higher prices on other things make homeownership less desirable. For example, if groceries increase by 10%, buyers won’t have those additional funds to put toward a house.
Low inflation and steady prices often translate to a quicker turnaround time on your home sale.
“I think a lot of buyers might hold off a little bit, at least at the beginning of the year, to see how the new administration impacts inflation,” Hamilton said. “Depending on what that impact is, it will likely affect mortgage rates and home prices, which will then affect buying trends.
“Worsened inflation could make it take longer to sell a home due to less affordability, but improved inflation could reduce time due to buyers jumping more quickly at better opportunities.”
Affordability
Another factor that influences how long it takes to sell your home is the list price. Considering inflation and interest rates, if you price your home too high, it may sit on the market.
When housing becomes more affordable, demand increases, giving you access to more buyers. However, when housing is unaffordable, buyers may delay purchasing a home. Ensuring your home is properly priced and affordable based on your market gives you the best chances of a quick sale.
“A house priced to sell quickly is priced lower than comparable homes,” explained Melanie Musson, residential real estate expert at InsuranceProviders.com. “A house priced high will take more time to sell and may have to go through several price reductions to sell.”
Natural Disasters
A hidden factor that often impacts how long it takes to sell a home is weather-related events. Areas with more natural disasters come with increased insurance premiums. Similarly, some lenders have begun adjusting insurance policy criteria or avoiding these high-risk areas altogether.
If your home is in a location known for weather events, buyers may look elsewhere, causing your home to sit on the market.
Population Growth
Population growth can also influence how long it takes to sell your home. Up-and-coming areas will have an influx of buyers, but areas with decreasing populations may see houses sitting on the market.
Higher population growth means access to more interested buyers, helping your home sell quickly.
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This article originally appeared on GOBankingRates.com: Real Estate Experts: These 5 Factors Will Influence How Long It Takes To Sell a Home in 2025
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
