Homeowners Are Confident Heading Into Peak Selling Season

A majority of potential U.S. home sellers believe now is a good time to list their homes. This is driven by their confidence in home values and buyer demand, according to survey results released Monday by Realtor.com.

Roughly 70% of potential sellers said it is a favorable time to sell, despite concerns about mortgage rates and broader economic factors. Many cited personal circumstances and lifestyle changes as key reasons for moving, with 79% saying they are selling out of necessity.

“Spring is historically the best time to sell, and this year, sellers are entering the season with high expectations,” Laura Eddy, vice president of research and insights at Realtor.com, said in a statement.

“Our survey found that many potential sellers feel confident they’ll not only sell quickly but also receive top dollar for their home. Despite their optimism, our survey suggests that potential sellers — especially those who have been waiting to sell for a year or more — still feel locked in due to interest rates.”

The most common motivations among prospective sellers included the need for more space (34%), a desire to downsize (25%) or the need to relocate for family reasons (21%).

Life events such as marriage, children or divorce motivated another 18% of respondents, while 15% cited work-related reasons and 10% said they could no longer afford their current home. Overall, the most common reason was the desire to relocate to a different community, cited by 46% of respondents.

Sellers prepare to list despite concerns

While market factors like interest rates are affecting the timing of decisions, many homeowners are actively preparing for a sale. Nearly all potential sellers (96%) have taken at least one step toward listing their property. A majority (71%) have researched their home’s value, while 61% have looked into values across a neighborhood.

More than one-third have already made home improvements to boost appeal. Most of these projects were minor updates such as repainting or landscaping, completed by 70% of those who renovated. A significant portion (65%) also addressed potential inspection issues, or undertook major renovations such as kitchen or bathroom overhauls (59%).

More than half of potential sellers have taken formal steps toward listing. The most common move has been to contact a real estate agent (36%), followed by conducting a home inspection (27%) and actually listing the home for sale (22%).

“With the best time to sell approaching, sellers are optimistic and with a still-sizable nationwide housing shortage, there’s good reason to be,” said Hannah Jones, senior economic research analyst at Realtor.com.

“Our research shows that the housing supply gap would take 7.5 years to close nationwide and much longer in some regions. At the same time, we’ve seen pronounced shifts in financial markets as the economy adjusts to new policies. It’s always a good idea to work with an expert, and this is even more true at a time when housing markets are evolving to reflect broader economic conditions.”

Mortgage rates remain a barrier

Nearly two-thirds (61%) of potential sellers have been considering a move for more than a year, with 46% falling into the one- to two-year category.

One major factor holding them back is mortgage rates. Among those with a mortgage, half say they feel “locked in” by current rates. That number rises to 55% among those who have been considering selling for more than a year.

Interest rate expectations appear to be influencing seller behavior. While 78% of prospective sellers believe rates will stay the same or increase over the next year, 43% of those expecting a rate hike said it makes them more likely to sell now. Meanwhile, 69% of those expecting a rate decline said it increased their likelihood to list their home.

Sellers’ attitudes vary by geography. In the Northeast, 80% of potential sellers believe it’s a good time to sell — a higher share than in the West (72%), South (69%) or Midwest (65%).

In the West, sellers were more likely to expect offers above asking price. The Northeast, currently the most undersupplied region, also showed the slowest year-over-year growth in new and active listings. This is likely fueling increased seller confidence there, according to Realtor.com.