Is 2025 a Better Year to Sell?

The mantra ‘it’s a buyer’s market’ is one we’ve heard a lot in the last year or two. The cost-of-living crisis put buyers in the driving seat, allowing them to negotiate harder on asking prices to clinch the deal that best suited them.

So, as a seller, you might be asking what’s in it for you and whether 2025 will be a good year to put your property on the market at last. Admittedly it remains a buyers’ market - just. But that doesn’t mean it’s not a good time to sell.

More buyers coming to market

Lower inflation, interest rates and mortgage rates saw buying activity pick up in 2024. As further cuts are announced later this year and affordability continues to improve, we might expect to see more buyers coming to market. That means greater potential for finding the perfect buyer for your property, allowing you to move on.  

There’s also likely to be a flurry of buying activity in the first quarter in an effort to avoid the reduced stamp duty thresholds which come into effect from 1 April. Getting your house on the market sooner rather than later will help to capture the interest of such buyers, whether they make the deadline or not.

Rising asking prices

Asking prices are expected to continue to rise, with a 4% increase in average asking prices expected by the end of 2025. The increase in buyers will potentially mean greater demand for the right property – therefore ensuring a greater likelihood of the asking price being achieved.

But it’s also likely to attract other sellers to market meaning more properties should be available to buy than before. This means that realistic pricing and staging and marketing your property to help it stand out from your competition will still be essential to attract the right buyer this year.

The possibility of cheaper mortgages

Mortgage rates fell in 2024 and will continue to fall this year. But returns to the lows of a few years ago during the pandemic won’t happen any time soon. Instead, mortgage rates are likely to settle around the 4% mark.

You will need to decide whether you want to fix with a two-year deal in anticipation of further cuts or fix for a longer five-year period. However, if your previous mortgage deal is near its end then higher costs are inevitable so along with the possibility of higher stamp duty charges, you’ll need to take this into account in your budgeting when selling to buy somewhere new.

Increased market confidence

The economy and the housing market are not out of the woods yet and there may well be more economic pain to come, especially as businesses get to grips with increased national insurance costs after the budget. But the plus side is that market and consumer confidence is increasing and with it brings greater certainty. That opens up new opportunities for 2025 and ensures a greater willingness to proceed with deals.

For more information on how we can assist you on your sales journey, please contact one of our branches in Seaford, Peacehaven, and Newhaven areas. If you would like further guidance on any part of the sales process, get in touch with us today.