Should I sell my house now or wait? Home prices are rising, but buyers are pulling back

Key takeaways

• Home prices have risen for 37 consecutive months year-over-year and inventory remains below balanced-market levels, but pending home sales fell to their lowest point since January 2026, signaling that buyer activity is cooling in some markets. 
• About 70% of mortgage holders have a rate below 6%, making the decision to sell and buy again at today's rates near 6.67% a significant financial consideration. 
• The best time to sell depends on your personal finances, life circumstances and local market conditions, not on national headlines or attempts to time the market. 

Homeowners asking "should I sell my house now or wait?" are weighing a decision shaped by two opposing forces.

On one side, home prices continue to rise and inventory remains limited, which benefits sellers. On the other, mortgage rates near 6.67% make the prospect of buying the next home more expensive, especially for owners currently locked into rates between 2% and 3.5% from the 2020 to 2022 refinancing period.

The latest National Association of Realtors (NAR) Pending Home Sales report, released August 18, 2026, shows contract signings declining across all four U.S. regions, adding a new layer to this decision.

There is no universal answer. The right timing depends on where you live, how much equity you have, what rate you currently carry and whether your reasons for moving are financial, personal or both. This article walks through the current market data, the scenarios where selling now makes sense, the situations where waiting may be the better call and how to think through the decision.

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The national housing market in mid-2026 still leans in sellers' favor, though conditions have shifted from the extreme seller's market of 2021 and 2022.

The median existing-home sales price in July 2026 was $434,100, up 2.0% from a year ago, according to the National Association of Realtors. That marks 37 consecutive months of year-over-year price increases. Prices rose most sharply in the Northeast, where the median hit $563,800 (up 5.2% year-over-year), followed by the Midwest at $342,900 (up 2.8%). Growth was more modest in the South ($371,700, up 0.9%) and the West ($622,200, up 0.2%).

Inventory stood at 1.54 million units in July, equal to a 4.6-month supply. A balanced market is generally considered to be around six months of supply, so current levels still tilt toward sellers, though not as dramatically as in recent years. Homes sold in a median of 29 days.

Existing-home sales decreased 1.7% month-over-month in July to a seasonally adjusted annual rate of 4.06 million but were up 0.7% from a year ago.

"Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months," said NAR Chief Economist Lawrence Yun. "Year-to-date sales are up 2.4%."

However, a forward-looking indicator tells a more cautious story. Pending home sales, which track signed contracts and typically lead closed sales by one to two months, decreased 2.3% month-over-month and 2.2% year-over-year in July, falling to their lowest level since January 2026, according to the NAR Pending Home Sales report released August 18, 2026. Contract signings declined in all four regions on a monthly basis, with the steepest drop in the West (down 4.7%) and the South (down 2.2%). Only the Midwest posted a year-over-year gain (up 1.7%).

"The highest mortgage rates of the year hit right in the middle of summer, and that's pulling back contract signings," said Yun. "Home prices are at record highs so houses for sale are sitting on the market longer, and fewer buyers are bidding above the asking price than a year ago, though there are large local market variations."

The 30-year fixed-rate mortgage averaged 6.67% as of August 13, 2026, according to Freddie Mac. That rate has been climbing for much of the summer, rising from 6.43% in early July to 6.69% by early August before ticking down slightly. A year ago, the same rate averaged 6.58%.

For sellers, the takeaway is straightforward: Prices are still rising, but the pace has slowed. Inventory is gradually increasing, giving buyers more options and more leverage to negotiate. Mortgage rates remain elevated, which keeps some buyers cautious. Properties that are well-priced and in good condition are still selling relatively quickly. Those that are overpriced or need significant work are sitting longer. And while closed-sale data still favors sellers in most markets, the pending sales decline suggests that buyer demand is softening, which could gradually shift conditions in some areas over the coming months.

The drop in pending sales may signal that buyer leverage is rising. In markets where contract activity is already slowing, sellers who wait too long may find it harder to get top dollar. Several life and financial scenarios favor listing sooner rather than later.

Job relocation or a major life change. A new job in another city, a divorce, a change in family size or a move to be closer to aging parents are all situations where the timeline is often set by circumstances, not by the market. When a move is driven by necessity, waiting for better conditions may not be realistic or worthwhile.

You have significant equity. If you purchased your home before 2020, there is a strong chance it has appreciated considerably. Homeowners who bought during or before the pandemic-era price run-up may be sitting on substantial gains. That equity can serve as a large down payment on the next home, which reduces the loan amount and offsets some of the impact of a higher mortgage rate.

Suppose a homeowner has $300,000 in equity and buys a $500,000 home. Putting that equity toward a 60% down payment means financing only $200,000, even at 6.67%. The resulting monthly payment is meaningfully lower than it would be with a standard 20% down payment on the same property.

You are downsizing. Sellers moving from a larger, more expensive home to a smaller or less costly one often come out ahead financially, even in a higher-rate environment. The proceeds from the sale may cover the next purchase outright or require only a small mortgage.

You are selling a second or inherited property. If you are not buying again immediately, the rate environment is less relevant. Selling an investment property, a vacation home or an inherited house while prices remain elevated lets you capture gains without the pressure of also being a buyer.

Your local market strongly favors sellers. National data is useful context, but real estate is local. In some markets, particularly in the Northeast and parts of the Midwest, demand still outpaces supply. If your agent confirms that homes like yours are selling quickly and at or above asking price, the conditions may support listing now.

You can pay cash for the next home. If the sale proceeds or other savings allow you to buy the next property without a mortgage, the rate environment does not factor into your decision at all.

Waiting is not a failure to act. In several situations, staying put is the more sound financial and practical choice.

The lock-in effect applies to you. Roughly 70% of U.S. homeowners with a mortgage have a rate below 6%, according to an analysis of recent housing data. A large portion of those homeowners are at 2% to 3.5%. Selling means giving up that rate. If your current home still fits your life, your commute, your family size and your budget, the math often favors staying, at least until rates shift or your circumstances change. Many homeowners appear to be reaching that same conclusion. Yun noted that pending contracts are currently 30% below their pre-pandemic 2019 level even though payroll employment is 5% above 2019 levels, pointing to sizable pent-up demand that may be released as affordability improves.

Consider a homeowner paying $1,650 per month at 2.8% on a $400,000 balance. Buying a $500,000 home at 6.67% with 20% down would produce a monthly principal-and-interest payment near $2,570, an increase of roughly $920 per month. That is a real number, and it should be weighed against whatever benefit the move provides.

You owe more than the home is worth. If you are underwater on your mortgage, meaning you owe more than the home would sell for, selling requires bringing money to the table or negotiating a short sale with your lender. In most cases, waiting to build more equity is the better option.

Your home needs major work before listing. Significant deferred maintenance, such as a failing roof, outdated electrical systems or foundation issues, can reduce your sale price or scare off buyers entirely. If you cannot afford to make those repairs right now, waiting until you can invest in the property may yield a better outcome. Minor cosmetic fixes are manageable, but structural or mechanical problems are a different situation.

You do not have a plan for where you will live next. Selling without a clear next step can lead to expensive short-term housing, rushed purchase decisions or settling for a home that does not meet your needs. If inventory in your target area is limited or prices are beyond your budget, it may be worth waiting until you have identified a realistic path forward.

You are making a lateral move. If the next home would be a similar size, in a similar area, with no clear improvement to your daily life, the transaction costs alone may not justify the move. Between agent commissions, closing costs, repairs, moving expenses and the rate increase, a lateral move can cost tens of thousands of dollars with limited upside.

Before deciding to list, understand what selling actually costs. Sellers typically spend 6% to 10% of the sale price on the transaction, according to Homes.com. On a $434,000 home (close to the current national median), that translates to roughly $26,000 to $43,000.

The major cost categories include:

• Agent commissions: Typically 5% to 6% of the sale price, split between the listing agent and the buyer's agent, though rates are now more negotiable following a 2024 NAR legal settlement. 
• Closing costs: Usually 1% to 3% of the sale price, covering title fees, transfer taxes and attorney fees where required. 
• Repairs and staging: Varies widely, from a few hundred dollars for minor touch-ups to tens of thousands for significant updates. 
• Moving expenses: Local moves generally cost $1,000 to $2,000; long-distance moves can run several thousand dollars or more. 

Most sellers also qualify for a federal capital gains tax exclusion of up to $250,000 (single filers) or $500,000 (married couples filing jointly) if they have lived in the home for at least two of the last five years. That means many sellers will not owe federal taxes on their profit.
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Rather than trying to time the market, focus on your own situation. No one can reliably predict where mortgage rates or home prices will be in six months or a year. These questions can help frame the decision:

1. Why do I want to move? Is the reason urgent (relocation, family change, financial pressure) or optional (preference, curiosity, a sense that "now might be a good time")? Urgent reasons generally support selling sooner. 
2. Can I afford the next home at today's rates? Run the numbers using your expected sale proceeds, your likely down payment and current mortgage rates. If the monthly payment increase is manageable, the move may make sense. If it would strain your budget, waiting could be wiser. 
3. How much equity do I have? Significant equity can offset a higher rate on the next purchase by reducing the loan amount. Check your current mortgage balance against a recent estimate of your home's value. 
4. What does my local market look like? Ask a local real estate agent how quickly homes like yours are selling, what price range is moving fastest and whether inventory in your area is rising or falling. National averages may not reflect your neighborhood. 
5. What will it cost me to sell? Factor in the 6% to 10% in transaction costs. Once you understand your likely net proceeds, you can assess whether you are in a strong enough position to make the next move. Your agent can prepare a seller net sheet that estimates your take-home amount. If you do list, understanding how to handle offers on your house will help you evaluate bids clearly. 
6. What happens if I wait a year? Consider the cost of staying: continued maintenance, property taxes, insurance and the opportunity cost of not accessing your equity. Also consider the benefit: your current low rate, the stability of not moving and the possibility that market conditions may shift in your favor. 

The decision to sell a home is personal. A strong local market may favor listing now, while a low mortgage rate and no pressing life reason to move may favor waiting. There is no single right answer.
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This article is for informational purposes only. Consult a licensed real estate agent, financial adviser or attorney for guidance specific to your situation.