Should I Stay or Should I Go? Considerations for Selling and Moving in 2025

The Clash famously asked, “Should I stay or should I go?” in their iconic song, and in 2025, homeowners might find themselves humming the same tune as they weigh their housing options. With mortgage rates playing a pivotal role, the decision has never been more nuanced. Currently, about two-thirds of homeowners with a mortgage enjoy rates of 4% or less, while present rates are hovering near 7% again. This jump would significantly increase payments for many borrowers, even with a lower mortgage balance. So, how do you decide whether to stay put or make a move? Here are key factors to consider:

1. Market Trends and Timing

The real estate market in 2025 is shaped by fluctuating interest rates, housing inventory, and pricing uncertainty. Low inventory levels have driven up competition and prices, making it a great time to sell. However, if inventory increases or price growth slows, waiting to buy might be more advantageous. Research your local market—are home values rising, and is it a seller’s market? Forecasts suggest varied outcomes across the country, so understanding specific market conditions is crucial. Selling in a strong market can maximize your return, but waiting for the right conditions may also yield benefits.

2. Financial Considerations

Assess your current financial situation. Do you have enough equity in your home to make selling worthwhile? Calculate the costs of selling, such as agent fees, closing costs, and moving expenses. If buying a new home, factor in mortgage rates and affordability in your desired location. Keep in mind that moving from a 4% mortgage to a 7% rate could substantially increase your monthly payment, even with a smaller loan amount.

3. Lifestyle and Needs

Has your current home outgrown your needs, or does it feel too small? Consider changes in your family size, work-from-home arrangements, or the desire to downsize or upgrade. Your home should align with your current and future lifestyle.

4. Renovation vs. Moving

Sometimes, staying put and investing in renovations can offer the space or modernity you’re seeking without the upheaval of moving. Compare the costs of remodeling with the potential price appreciation if you decide to sell later.

5. Emotional Factors

A home is more than just bricks and mortar; it’s memories and community. Reflect on how attached you are to your neighborhood, schools, and social networks. Sometimes, emotional ties outweigh practical considerations.

6. Sell and Rent for a While

Does it make sense to sell and rent for a while? Renting can provide flexibility, allowing you to wait for better market conditions or take time to find your ideal next home. While renting may not build equity, it can be a strategic move in a fluctuating market, especially if home prices are expected to decline or stabilize.

7. Lender Incentives

Does your mortgage lender offer compelling incentives to prepay your current loan or to take a loan on a different property? Some lenders provide discounts, reduced fees, or other benefits to encourage refinancing or borrowing for a new home. Explore these options to determine if they make moving financially advantageous.

Making the decision to sell and move or stay requires careful thought. Consult with real estate professionals, financial advisors, your lender, and even trusted friends to evaluate your options. 2025 is poised to be a year of opportunities for those who make informed choices.

Have a joyous and prosperous New Year!!!