4 Reasons Why Americans Are Changing Their Minds About Selling Their Homes in 2025

According to the Federal Reserve Bank of St. Louis, U.S. homes sold for $510,300 on average last year. But despite the high numbers, many Americans are opting to hold on to their properties in 2025. Why?

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For some, it’s because high mortgage interest rates — and housing prices — make it harder to find an affordable home to purchase. For others, it’s a matter of limited housing inventory.

Mortgage rates for 15- and 30-year fixed-rate loans have declined slightly in recent months. However, the average rates are still high — 6.63% for 30-year loans and 5.79% for 15-year loans.

Today’s rates are significantly higher than they were in the past. Even just five or 10 years ago, buyers could find rates ranging from around 2.00% to 4.00% (depending on the loan type and other factors).

For homeowners who are sitting on such low rates, the higher rates of today can make it harder to justify selling.

Some Americans aren’t selling because of supply issues. Even those who could sell their property at a good price can’t always find accessible, affordable homes in their preferred neighborhood.

“I’ve had sellers wait because supply is so low,” said Brett Johnson, owner and licensed real estate agent at New Era Home Buyers. “If they sell, they might not be able find a new home of equal or better quality.”

According to Redfin, there were 1,560,263 homes for sale in January 2025. This is down from October of last year when there were around 1.9 million homes.

The decision not to sell isn’t always just about housing prices or availability. Sometimes, it comes down to job security and external economic conditions.

“If people feel like a recession is on the horizon or job security is an issue, they are not going to move,” said Johnson.

In February 2025, the national unemployment rate was 4.1%. This is about on par with last year’s unemployment rate, but it’s higher than it was in 2023.

In uncertain times, the safer option is often to wait and see if the economy improves.

Like anyone else, homeowners want a good deal for their home. If prices start to fall, or if they can’t be guaranteed a high offer, waiting is often better.

“One of the biggest red flags that an individual should hold off selling — no matter the year — is when prices of homes start falling in their area,” said Johnson.

Even though housing prices tend to increase over time, there are sometimes dips. For example, prices fell slightly in 2024, though they’ve since started to rise again.