Q4 US Housing Market: Should You Sell Now or Wait

Trends in the US housing market are reacting to changes in interest rates. For instance, high-interest rates have a noticeable effect on American homebuyers and sellers, creating unfavorable conditions in the market.

Staying current with the changes in the housing marketing update is crucial. It’s worth noting that many factors influence the unpredictable and dynamic nature of the real estate market, but real estate market predictions and trends are consistent during the year’s final quarter.

Typically, there’s a slowdown in activity due to holiday plans, colder weather, and decreased buyer interest during the Q4 US housing market. With the final quarter already underway, deciding whether to sell your home now or wait for 2024 is a significant undertaking.

Based on Fannie Mae’s latest Home Purchase Sentiment Index, 63 percent of homeowners responded that it’s an excellent time to sell. However, before listing your home for sale, there are crucial factors to consider.

To help you make an informed decision, this article examines critical factors when deciding whether it’s a good time to consider selling. We also explore the anticipated trends in the Q4 US housing market and housing market predictions for 2024.

When should you consider selling your house?

Sometimes, life events or financial factors necessitate a home sale. Knowing the prime seasons for selling a house can put you in a more advantageous position.

Seasonality is one factor influencing the supply and demand of housing in the real estate market. Still, the ideal season for selling your home can vary depending on the location, whether in New York, California, Texas, or Florida.

There is, however, increased activity in the housing market during the spring and summer months. One contributing factor is that most families prefer to move to a new home during warmer weather and before the new school year starts.

There are numerous situations where it’s necessary or wise to sell your house. Read on to discover more considerations for when it’s a good time for homeowners to sell their houses.

Low interest rates

There are more than a few advantages for sellers when rates are low. Homeownership can be more affordable since buyers can afford larger loans with low-interest rates. As a result, more prospective buyers enter the market, increasing buyer demand and competition.

A growing pool of buyers looking for homes in the market often results in bidding wars, which can increase house prices. This could mean a higher likelihood of selling your home faster for a more substantial profit.

Limited housing inventory

The number of homes available on the market can also affect how fast your house sells. If housing inventory is low, buyer competition will likely increase. Buyers may engage in bidding wars with fewer homes available to meet their needs and preferences.

Sellers are more likely to receive multiple buyer offers in a competitive housing market. Buyers must act promptly and make highly competitive offers to secure a winning bid. Thus, you could sell your home for a higher price within an exceptionally short period.

Ready for downsizing

Are you struggling to manage some areas of the home? Does the property require more repairs than you can handle? If so, you might be ready to downsize and sell your home. It will help you save a lot of space, time, and energy. This might be a more practical choice, especially for older homeowners.

Relocating for a new job

The pressure of a job relocation can make selling a house more challenging. However, regardless of the fluctuations in the market, selling may be unavoidable if you have to relocate for a new job. Moreover, you may need the proceeds from the sale to fund your next home purchase.

When should you wait to sell your house?

There might be some great reasons to sell a home right now, but they may not align with everyone’s timing and circumstances.

Waiting to sell can be a strategic move for many homeowners. It can significantly influence how fast and at what price your house sells. Here are a few situations where you may consider holding off on putting your home up for sale.

Rising mortgage rates

From a buyer’s perspective, rising mortgage rates can diminish one’s bargaining power. Housing affordability can be a significant concern since higher rates could mean qualifying for a lower amount from lenders.

Buyers may only be able to purchase a home in a lower price range. As a result, sellers cannot increase the purchase price. They may even lower it if it’s not attracting offers.

With rising mortgage rates, only a limited pool of buyers can afford the price you prefer. Holding off on selling might make sense while the mortgage market is less competitive and your home price declines.

Recent refinanced mortgage

Selling after a recently refinanced mortgage is not financially advisable. If you do so, the cost of your refinance will be greater than the amount you save from the transaction. This means you’ll end up losing money.

Note that refinancing your mortgage involves incurring costs. You won’t have enough time to recoup such costs if you sell shortly after refinancing. There also won’t be enough home equity, which can prevent you from selling more than you owe and earning a profit.

Process of upsizing

Suppose you’re in the process of upsizing. A larger home may be unaffordable, especially in a competitive mortgage market.

Most homeowners need to rent a property between selling their current home and purchasing a new one when upsizing. It might be wise to wait to sell your home until you ensure that your finances can cover the price of the home you want.

Incomplete home renovations

Certain renovations can increase the value of your home. But consider delaying the home sale until the necessary work is done.

Incomplete home renovations often discourage potential first-time homebuyers who might be interested in the property. They can also reduce the chance of getting a reasonable price. It’s crucial to showcase your home in its peak condition to secure the most favorable offer possible.

What can you expect in the Q4 US housing market?

Before deciding whether you should sell your house now, examine what sellers expect in the final quarter of the US market.

Seasonal demands often influence the housing market. However, the COVID-19 pandemic has disrupted the seasonal patterns in the real estate sector. Homebuyers and sellers are paying more attention to mortgage rates than seasonality.

Experts in the housing market anticipate that elevated home prices, interest rate hikes, and limited inventory will pose challenges in the fourth quarter. These combined factors affect affordability, which remains a significant concern for homebuyers year over year.

Despite the Federal Reserve’s decision to pause interest rate hikes for the second time, mortgage rates are still relatively high. Rates differ slightly between lenders and borrower-specific factors.

According to Freddie Mac, however, the national average for 30-year fixed-rate mortgages as of October 5, 2023, is 7.49 percent. That’s up from the 6.13 percent reported in the first quarter and the 6.29 percent recorded last year.

On the other hand, realtor.com forecasts pointed out that mortgage rates will decrease gradually to 7.1 percent by the end of the year. Realtor.com Chief Economist Danielle Hale also pointed out that buyers can still expect higher home costs since home price declines are relatively modest and not universal.

Moreover, the National Association of Realtors (NAR) reported a 0.7 percent decline in existing home sales for August 2023 from July. This includes transactions involving single-family homes, condominiums, townhomes, and co-ops.

Considering the current rate conditions, housing market activity is expected to continue to slow down in the fourth quarter. It’s also likely that the Fed will raise interest rates before the end of the year to further control inflation.

Sellers planning to list homes for sale in the fourth quarter must be realistic. Because of limited buyer demand and increased credit costs, days on the market will remain high. However, pricing the home based on current market conditions and adjusting the price accordingly may help.

What are the housing market predictions for 2024?

Many sellers may opt to delay putting their homes for sale, hoping for a more favorable market condition next year. But will the housing market condition improve in 2024? There are numerous predictions about the housing market’s direction for the coming year.

Still, house prices, mortgage rates, and inventory levels will continue to influence housing affordability in 2024. As inflation eases to its lowest in over two years, it’s widely anticipated that mortgage rates will decrease slightly next year.

However, it will remain high enough that buyers will continue to experience challenges with affordability. Consequently, sellers will hesitate to give up their currently low interest rate for a much higher one. Hence, it’s also expected that inventory will remain limited.

Tight inventory may put sellers in a more advantageous position. However, when entering the market in 2024, it’s wise to obtain guidance from an experienced real estate agent to walk you through the complexities of the housing market conditions.

Assess Your Readiness for a Home Sale

Selling a house or waiting to sell is a decision with personal and financial consequences. Before putting your home on the market, ensure you’re financially and emotionally prepared to sell it and showcase it to strangers.

The current real estate market is an essential factor, as it affects the value of your home. However, it’s also important to consider your financial goals and personal timeline when deciding whether to sell now or wait until 2024.

Do you need the proceeds from the home sale for a substantial purchase or investment? Are impending job changes or other life events affecting your decision to sell? These are critical considerations when assessing your readiness for a home sale.

Q4 US Housing Market: Should You Sell Now or Wait for 2024? was last modified: July 1st, 2025 by Billy Guteng

Written by Billy Guteng. November 20, 2023

Billy is a content writer for Kukun. He was born in France, and has lived in multiple cities around the world ever since. He loves art, design and architecture as well as construction and real estate.