Spring and summer are the best times to sell a home. After hiding inside all winter, spring is when many buyers come out to scour the market for what’s available. If there’s enough interest in your home, that could mean a bidding war and possibly top dollar.
The Federal Reserve is expected to begin cutting rates as soon as September, with CME FedWatch signaling a likely quarter-point reduction. A cut could make mortgages more affordable, potentially drawing more buyers into the market.
Even though the Fed held rates steady at its last meeting, the prospect of cuts ahead makes timing more important than ever. Here’s what to consider before deciding whether to sell now or wait.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How to figure out if it’s time to sell your house or wait
Economic factors significantly influence homebuying. If you’re thinking about selling, the decision isn’t just about timing the market — it’s about asking yourself the right questions.
Looking at mortgage rates, housing demand, the cost of re-buying and the risks of waiting can help you decide whether to list your home now or hold off.
1. What are mortgage rates like?
Right now, mortgage rates are still high. As of August, a 30-year fixed-rate mortgage averages 6.58%. That’s up from this time last year and nearly three times the rate in January of 2021.
While treasury yields have a higher influence on mortgage rates than the rate set by the Federal Reserve, Fed interest rate changes still impact loans and lending products. When the Fed makes benchmark interest rate changes, other groups usually fall in line with them.
For example, if a prospective buyers want to lock in a low rate, they might want to hold off until the Fed cuts interest rates.
At the same time, if sellers really want to sell now, there might not be as much buyer interest. This might mean having to lower the asking price. Timing matters.
Explore and compare some of today's best mortgage offers with the tool below, powered by Bankrate:
2. Is there high demand?
No one can time the market perfectly, but we can get a sense of whether conditions favor buyers or sellers. In a buyer’s market, there are plenty of homes on the market at competitive prices, giving buyers the upper hand to negotiate.
In a seller’s market, demand outpaces supply. With more buyers than available homes, competition can push sale prices higher — sometimes well above asking.
If you see signs that a seller’s market is on the horizon, listing sooner could work to your advantage. But if your neighborhood is already flooded with new listings, it may be wise to wait until conditions shift back in your favor.
3. What’s the cost to re-buy?
Selling your home at top dollar is nice but think about the steps after that. For example, where are you planning to live and can you afford your new place?
Factor in everything — mortgage rates, property taxes, home insurance, and potential homeowners association fees — since these costs can add up quickly. It might help to use a mortgage calculator to see how much home you can afford.
Remember, you’ll still need to repay your lender any of the outstanding balance of your existing mortgage. Do the math first. Get an idea of how much money will be left after all the bills have been paid and what you'll likely pocket when the home transfer is done.
4. Is it risky to wait?
Home prices remain higher than they were five years ago, but sales have slowed recently. That raises a tough question: if you wait, do you risk your home losing value?
If you’re not moving for work or don’t have the financial flexibility to relocate, there may be no need to rush. But waiting too long could mean more of your neighbors deciding to list their homes for sale, increasing competition.
More listings can quickly shift the market in buyers’ favor, which could force you to lower your asking price and reduce your final sale proceeds.
Is it time to sell your home right now?
Ultimately, trying to time the market doesn’t usually work. Rather than figure out what the competition is doing, think about how selling impacts you and your family. If it costs more to stay where you are, you may want to sell your home to stop bleeding money.
If you don’t need to move but just want to, crunch the numbers to compare the cost of your new living space and where you’re at right now.
If you can afford to hold off or can’t find a better deal than what you’re paying, staying put might be worth it.
Related Content
-
Investing Freebies: Perks You Get for Owning These StocksWhile the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
Choose a Beneficiary for Your Estate Plan: It's Not 'Duck, Duck, Goose'Choosing a beneficiary for your 401(k), insurance policy or similar assets is crucial for estate planning. Here is how to do it, and six pitfalls to avoid.
-
Can You Afford a Million-Dollar Home on a $250,000 Salary?It’s more than the sticker price — mortgage rates, down payments, taxes and debt all factor into whether a million-dollar home fits your budget.
-
Why a Landmark Real Estate Commission Settlement Hasn’t Lowered Costs for HomebuyersThe 2024 NAR settlement promised commission transparency and negotiation —but one year later, average fees remain unchanged. See why change has been slow and what it means for homebuyers and sellers.
-
Lock or Float? How to Decide on Your Mortgage RateMortgage rates move daily, here’s how to know if you should lock in a rate now or let it float until closing.
-
The Role of a Mortgage Underwriter in Buying a HomeFrom fast-track approvals to manual reviews, here’s what to expect (and how to avoid delays) in the underwriting process.
-
My Mortgage Rate is 6.5%. Should I Refinance If Rates Fall By Half a PointA half-point dip may not be enough to offset closing costs. Here's the magic number that makes refinancing pay off.
-
How Home Appraisals Work — and What the Final Value MeansFrom comps to contingencies, here’s what a home appraisal reveals about your property’s true worth.
-
The 28% Rule for Housing: Does It Still Work in Today’s Market?Rising home prices and stubborn mortgage rates put this long-standing rule to the test.
-
The Ultra-Rich Don't Always Pay Cash: Why Mark Zuckerberg Took Out a MortgageSome of the wealthiest Americans opt for mortgages as a strategic way to preserve liquidity, leverage investments and reduce tax exposure.
