​As of April 2025, the real estate market presents a nuanced landscape for those considering downsizing. Deciding whether to sell your current home now or wait requires a careful evaluation of market conditions, personal circumstances, and future projections.​

Current Market Conditions

The housing market has experienced significant fluctuations over the past few years. Home prices reached record highs in mid-2024, with a median sale price of $426,900 in June 2024. Although prices have since stabilized, January 2025 still recorded the highest January median on record at $396,900. Mortgage rates have also seen an uptick, hovering around 6.5% to 7% .​

Bankrate

Inventory levels remain low but are gradually increasing. The Realtor.com 2025 Housing Forecast anticipates an 11.7% rise in existing for-sale inventory compared to 2024 . This suggests that while competition among buyers may ease slightly, sellers might face more competition as more homes enter the market.

Advantages of Selling Now

1. Favorable Market Conditions: With inventory still relatively low, sellers may benefit from less competition, potentially leading to quicker sales and favorable offers.

2. High Home Values: Home prices remain elevated compared to pre-pandemic levels, allowing sellers to capitalize on substantial equity gains.

3. Buyer Demand: Despite higher mortgage rates, there is ongoing demand from buyers, particularly those looking to downsize for financial or lifestyle reasons .​

Considerations for Waiting

1. Potential for Lower Mortgage Rates: Some forecasts suggest that mortgage rates may stabilize or decrease slightly in the coming years, which could enhance buyer affordability and potentially increase demand .​

2. Market Adjustments: As more inventory becomes available, buyers may have more options, potentially leading to longer selling times and the need for more competitive pricing.

3. Personal Readiness: Ensure that downsizing aligns with your personal and financial goals. Consider factors such as retirement plans, lifestyle preferences, and the suitability of your current home.

Steps to Take When Downsizing

• Evaluate Your Needs: Determine the size and type of home that fits your current lifestyle and future plans.​

• Financial Assessment: Analyze your financial situation, including the equity in your current home, potential proceeds from a sale, and the cost of purchasing a new, smaller home.​

• Declutter and Organize: Begin the process of sorting through belongings to decide what to keep, sell, donate, or discard.​

• Consult Professionals: Engage with real estate agents, financial advisors, and possibly a moving consultant to guide you through the process and provide market insights.

Deciding whether to sell your home now or wait is a multifaceted decision that hinges on current market conditions, future projections, and personal circumstances. While the present market offers favorable conditions for sellers, particularly those looking to downsize, it's essential to consider your long-term goals and consult with professionals to make an informed choice.