January Market Report: How to Prepare Buyers for the Selling Season

The winter real estate doldrums may be in full effect, but prepping buyers for the busy season can help lay the foundation for a more successful 2025.

“Inventory is coming back because many people are just done waiting,” says Zillow Chief Economist Sklyar Olsen. “If we see more sellers coming back than buyers, we might have more neutral markets, even heading closer into the home shopping season.”

Buyer leads should prepare now for the spring selling season

“Credit repair can, in some cases, take as little as three months,” says Olsen. “So if they start now, buyers could be ready when the most homes from existing owners come onto the market —  the biggest jump we see is from February to March.”

Jack Christie, Origination Manager at Zillow Home Loans, has some advice to get clients started. 

“The action I always advise to start with is to pay down balances on credit cards to under 30% utilization — 10% is even better,” he says. “Also, not closing accounts is actually good. It can provide a longer length of credit history, which credit companies care about.”

Christie says that if buyers don’t have credit established, they can open a credit card account with a minimum credit limit of $300 from a big bank, but that “opening a credit card for a store you like or gas station could be less helpful, as retail and gas cards often have less stringent approval requirements, making them less impressive to lenders.”

Click here to download the graphic and share it on your social media accounts. 

Another note for buyers looking to improve credit: Medical debt affects an estimated one in 10 Americans. The federal Consumer Financial Protection Bureau recently issued new regulations barring medical debts from American credit reports. Provided the regulation survives the incoming administration, this could open opportunities for buyers who may not have previously qualified.

For more info you can share with clients, see How to Build Credit and Earn A Higher Credit Score in 8 Steps.

Higher mortgage rates are a form of buyer leverage

If there’s a silver lining that’s here now, it’s that high mortgage rates provide leverage for buyers.

“Whenever we have tough mortgage rates, it’s an opportunity to get in there and fight for your bargaining power,” Olsen says. “We saw more price cuts in December than we expected, as agents had to adjust in order to help their sellers sell before the end of the year. That trend could continue with motivated sellers in early 2025.”

Sellers may need pricing expectations managed

The flip side of buyer leverage means that frank conversations with sellers could be in order for 2025. In December, 17.2% of listings had a price cut.

“Agents will in cases need to have that delicate conversation with sellers too, ideally earlier than later,” says Olsen. “That list price they’re attached to might need to come down, especially if your seller is in a buyer's market. The comfort there is that so many sellers have record high home equity in 2025.”

It’s reasonable to expect, says Olsen, that this year successfully marketed and priced homes will go pending in about 2 weeks.