Why 2025 Might Be a Better Time to Sell Your Home

Prepared by Square Feet Appraisals in collaboration with Delaware Beaches Online

Data Source: Bright MLS 

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If you’ve been holding off on selling your home, 2025 might finally be the right time to make a move. Many homeowners who wanted to sell in 2024 sat on the sidelines due to market uncertainty and rising mortgage rates. But the tides are shifting, and sellers are becoming more optimistic.

More Homeowners Are Ready to Sell

According to Fannie Mae’s December 2024 Home Purchase Sentiment survey, 63% of consumers believe it’s a good time to sell—up from 57% the previous year. A nationwide survey found that nearly one in five homeowners (17.5%) is personally considering selling in the next 12 months.

Real estate agents and brokers are also growing more confident. In the Bright MLS service area, the seller activity index—measuring market optimism among professionals—has been steadily climbing. Though it remains just below the 50-mark (which signals full optimism), it’s already 13 points higher than at the start of 2024.

Pandemic-Era Buyers Are Now Sellers

A significant shift is happening: many homeowners who bought their homes during the pandemic are now considering selling. Nearly one-third of potential 2025 sellers have lived in their homes for less than five years.

Why? The rapid home equity gains during the pandemic have allowed many homeowners to move up sooner than past generations. Despite higher mortgage rates, many sellers can use their accumulated equity to “buy down” their next mortgage. In fact, 34% of prospective 2025 sellers currently hold mortgages below 4%, while 65% have rates below 5%.

Mortgage Rates Held by Prospective Sellers:

• 9%: Under 3%
• 25%: 3% – 3.99%
• 31%: 4% – 4.99%
• 18%: 5% – 5.99%
• 6%: 6% or higher
• 10%: No mortgage at all

Who’s Selling in 2025?

Younger homeowners are expected to dominate the market in 2025. Bright MLS’s national consumer survey shows that homeowners in their 30s and 40s will be the most active sellers:

• 27% of homeowners aged 30–39 plan to sell.
• 28% of homeowners aged 40–49 plan to sell.
• By contrast, only 10% of older homeowners expect to list their homes.

Why Are People Selling?

Life changes remain the biggest driver of home sales:

• 30s: Job-related moves are the top reason, followed by family changes (marriage, children, divorce, etc.).
• 40s: Family changes are the primary motivation, followed by career-related moves.

Sellers Want Maximum Exposure

A majority of homeowners (61%) planning to sell in 2025 believe that working with a real estate agent who broadly advertises their home is the best way to get top dollar. Nearly all prospective sellers acknowledge that wider exposure means:

• 59% expect to get the best price.
• 56% believe they’ll get more or better offers.
• 47% think their home will sell faster.

What Sellers Should Expect in 2025

While 2025 is shaping up to be a better time to sell, the market is shifting. Inventory is expected to increase, giving buyers more options. Sellers will still have the upper hand in many areas—especially with just 1.7 months of supply at the start of the year—but they’ll need to be prepared for more negotiations.

At the beginning of 2024, many homes sold for above asking price. By the end of the year, the sold-to-list price ratio had dropped to 98%, signaling that buyers were gaining a bit more leverage. In 2025, sellers should expect more concessions and competitive pricing to attract buyers.

Common Seller Concessions at the End of 2024:

• 40%: Credit for repairs
• 31%: Closing cost assistance
• 17%: Home warranty
• 10%: Price reduction due to a low appraisal
• 2%: Assistance to buy down a mortgage rate

The Bottom Line

The 2025 housing market will likely offer more opportunities for sellers than 2024 did—but success will depend on realistic pricing and smart marketing. With more competition expected, working with an experienced real estate agent who knows how to maximize exposure and navigate negotiations will be key.

If you’re thinking about selling, now is the time to start preparing your home and strategizing for the market ahead.