PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlX3ZpZXdwb3J0X2RldGVjdGlvbi5qcyIgLz48c2NyaXB0IGFzeW5jIHR5cGU9InRleHQvamF2YXNjcmlwdCI+bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzAnKTs8L3NjcmlwdD4=Lindsay Frankel is a Denver-based freelance writer specializing in personal finance and real estate content. Her work has been featured in publications such as Investopedia, NextAdvisor, BiggerPockets, Bankrate, and LendingTree. She graduated magna cum laude with a bachelor's degree in education from Elmhurst University. When she's not writing, you can find her playing music or exploring the outdoors with her rescue dog, Lucy. You can reach Lindsay at https://www.lindsayfrankel.com/.Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at lauren.williamson@hearst.com.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research. Mobile app users, click here for the best viewing experience.Unusual market conditions and dire predictions from some economists have many homeowners asking: Should I sell my house now or wait until later in 2023? Typically, homeowners who list their homes in the spring can take advantage of higher buyer demand. In 2022, the National Association of Realtors pinned mid-April as the optimal week to list a home — in other words, right about now. But the spring buying season has been off to a slower start than usual, with 20.1% fewer homes listed in March than in the same month last year, according to Realtor.com. Mortgage rates have begun trending down in recent weeks, which could spur some activity in the housing market. Still, the average for a 30-year fixed-rate mortgage is more than twice what it was during the pandemic housing boom, and many homeowners don’t want to trade in that rock-bottom rate for a higher one. Let’s dig in a bit more on this question of whether now is a good time to sell a house — and what factors to consider when making your decision.Why you may want to list your home nowInventory is low and prices are still highThe best time to sell is typically when buyer demand is high and interest rates and inventory are low. That ideal combination of factors made for a hot selling market in 2021, but conditions have since evolved. Mortgage rates have been on a wild ride during the first three months of 2023, but they’ve begun dropping in recent weeks. As of April 6, the average for a 30-year fixed-rate mortgage is 6.16%, the lowest it’s been in more than two months, according to Mortgage News Daily. "Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines," said Lawrence Yun, chief economist with the National Association of Realtors. "Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs."While inventory in February was up 15.3% over the same period in 2023, it’s still unusually tight, which is helping boost prices for sellers in some markets. "Inventory levels are still at historic lows," Yun said. "Consequently, multiple offers are returning on a good number of properties."The good news is, home values skyrocketed over the course of the pandemic, so selling now is likely a wise financial decision. “Despite prices coming off their June peak, most homeowners stand to make large profits if they sell their home, even in today's market,” says Dave Meyer, VP of data and analytics at BiggerPockets and author of Real Estate by the Numbers. Mortgages may soon be harder to get Federal Reserve Chair Jerome Powell said in a March 22 press conference after the latest federal funds rate hike that he anticipates recent turmoil in the banking system is "likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes." Translation: It’s probably going to become harder to get loans, a situation known as a credit crunch. The collapse of Silicon Valley Bank in early March (the second-largest bank failure ever), followed days later by the government takeover of Signature Bank, sparked fears of banking instability. As a result, banks will likely start to limit lending to ensure they have enough funds to survive a bank run — that is, when a bunch of depositors panic and withdraw their money almost simultaneously.Banks tighten credit in a few ways: They can impose tougher standards for getting a loan (such as requiring a higher credit score) and they may also raise interest rates, which discourages borrowers from applying for a loan in the first place. It can affect all types of borrowing, from mortgage loans to home equity lines of credit.As a result, if you’ve been sitting on the fence about selling, it could be prudent to list before it becomes harder to get a new mortgage — both for you and for potential buyers.Most economists believe prices will fallRising mortgage rates not only have the effect of making your new mortgage payments less affordable, but also shut many would-be buyers out of the market. Lower demand means less competition for your home, which affects the sale price you can reasonably hope to achieve. If these effects are widespread, when will the housing market crash? Economists at Wells Fargo, Capital Economics, Goldman Sachs, and many other firms believe housing prices will continue the slow decline they began in early 2023. The median sale price in February was $363,000, down 0.2% from the previous year, according to the National Association of Realtors — the first monthly year-over-year decline in nearly 11 years. If a recession takes hold, some experts predict prices could fall as much as 30% in highly overvalued markets. Even those who are more optimistic expect the market to shift to benefit buyers. If you’re considering selling in the next year, housing market predictions indicate that selling now could allow you to capture a higher price. Why you may want to wait to sell your homeYou’re trading up for a bigger home“If you're looking to trade up to a bigger home, this is a tough market to do that. Affordability is low, and you'll likely be paying considerably higher monthly mortgage payments on a trade up, even to move to a slightly bigger home,” says Meyer. If the monthly mortgage payments on a bigger house are unaffordable, you may have to stay put a little longer. You’re not in any rush to sell“Two years from now will be a better time to sell. The market and inflation will be resolved,” says Armstead Jones, strategic real estate advisor for Real Estate Bees. Many economists are expecting home prices to rebound by 2025. Mortgage rates are likely to come down by then as well, making it easier for you to afford your new home. Bottom lineFor most homeowners, now will be a better time to sell than later in 2023. That’s especially true if you live in a market that saw rapid appreciation in recent years. Your real estate agent can help you understand pricing trends in your area, along with available inventory and demand. Selling this spring may not be a bad idea in markets where prices are expected to remain flat or grow. But if you can hunker down and wait until 2025, you may realize even better outcomes. Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was first published on SFGate.com and reviewed by Jill Slattery, who serves as VP of Content for the Hearst E-Commerce team. Email her at jill.slattery@hearst.com.