Although the real estate market has been strong in recent years from a pricing perspective, the number of transactions has been relatively low. In fact, 2024 had the lowest level of existing-home sales for any year since 1995, according to the National Association of Realtors (NAR).
However, the housing market could be thawing soon. For one, there’s a typical seasonal pattern of home sales slowing in the winter months and then picking up in the spring and summer. But there are also some underlying developments that could support a deeper thawing. For example, in February, housing inventory rose 5.1% month over month, and 17% year over year, per NAR.
Meanwhile, mortgage rates, while still persistently high compared to recent years, have retreated a bit from recent highs. In January, the average 30-year fixed-rate mortgage hit 7.06%, and that has fallen to 6.67% as of late March.
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So, if the housing market does indeed thaw, here’s what that could mean for sellers.
As the typical winter real estate lull turns the corner toward spring, now could be a good time for sellers to list their homes or make any improvements that increase their home’s value before buyer demand potentially heats up.
“If I were to advise a seller now, I would say to go ahead and get their house on the market while there isn’t as much competition; however, it may stay on the market longer due to less buyers,” said DJ Parker, a realtor with the Converge Realty Team in the Hampton Roads area of Virginia.
But for sellers who are able to wait a bit, now could be a good time to do repairs or upgrades, with the market perhaps starting to pick up in April and then going into the summer, added Parker.
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A thawing housing market generally gives sellers more leverage than in one where sales are hard to come by. So, you can potentially be more selective, like by not accepting the first bid.
“Additionally, they will find that they won’t have to make as many concessions, especially if their house is priced right,” said Parker.
That said, try not to get overly restrictive in a way that holds your sale back.
“I would caution that they need to make sure their house is priced in a competitive range to get more buyers. We have seen some sellers list their houses way too high, only to see it sit on the market,” said Parker.
