As per data from the Federal Reserve Bank of St. Louis in the U.S., homes sold For an average of $510,300 last year. However, even with these substantial figures, numerous Americans are choosing to keep their homes in 2025. What’s the reason behind this decision?
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For others, it’s due to high mortgage interest rates — and housing prices — make it harder to find an affordable home to purchase. For others, it’s a issue of scarce housing supply.
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High Mortgage Rates
Recently, mortgage rates for both 15- and 30-year fixed-rate loans have experienced a minor decrease. Nonetheless, these averages remain elevated at 6.63% for 30-year mortgages and 5.79% for 15-year ones.
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.
Supply Issues
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.
Economy and Job Security
The choice not to sell doesn't necessarily hinge solely on house pricing or scarcity. Often, it boils down to employment stability and broader economic factors.
"If individuals believe a downturn is approaching or worry about their job stability, they won’t be inclined to relocate," stated Johnson.
In February 2025, the country's unemployment rate stood at 4.1%, which is roughly equivalent to the previous year's figure yet remains above the levels seen in 2023.
During unpredictable periods, the more cautious approach is typically to hold off and determine if the economic situation gets better.
Local or Regional Home Values
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.
Once more, it's not solely about decreasing house values. Individuals who struggle to secure a favorable deal on their present home might not have enough funds to cover the increased expenses of properties nowadays.
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The piece initially surfaced on Pawonation.com : 4 Reasons Why Americans Are Reevaluating Their Decision to Sell Their Homes in 2025
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