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Here are five factors that will influence how long it takes tosell a home in 2025.
Higher interest rates mean a higher mortgage payment.
As monthly payments increase, the number of buyers available decreases.
A $250,000 30-year mortgage comes with a monthly payment of $1,663 at a 7% interest rate.
Dropping the interest rate to 5% creates a new monthly payment of $1,342.
When interest rates are low, you will have access to a larger buyer pool.
Inflation
Inflation is going to be a big one, said Adam Hamilton, CEO ofREI Hub.
Central banks increase interest rates as inflation rises to cool down the economy and control price growth.
Once interest rates are adjusted upward, inflation starts to decrease.
Inflation also impacts your buyer pool.
For one, rising interest rates make it more challenging to qualify for home loans.
In addition, higher prices on other things make homeownership less desirable.
Low inflation and steady prices often translate to a quicker turnaround time on your home sale.
Affordability
Another factor that influences how long it takes to sell your home is the list price.
When housing becomes more affordable, demand increases, giving you access to more buyers.
However, when housing is unaffordable, buyers may delay purchasing a home.
Areas with more natural disasters come with increased insurance premiums.
Similarly, some lenders have begun adjusting insurance policy criteria or avoiding these high-risk areas altogether.
Population Growth
Population growth can also influence how long it takes to sell your home.
Higher population growth means access to more interested buyers, helping your home sell quickly.
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