Weak buyer interest and falling home prices are pushing many sellers out of the housing market. In September, around 85,000 sellers in the U.S. removed their listings, a 28% increase compared to last year. This is the highest number of delistings for that month in eight years, according to Redfin.
Many homes are sitting unsold for longer periods. A recent report shows that 70% of homes listed in September remained on the market for 60 days or more. Sellers are reluctant to accept lower offers and would rather wait for better prices. The S&P CoreLogic Case-Shiller Index revealed that home prices increased by just 1.3% year-over-year in September, slightly down from 1.4% in August.
Asad Khan, a senior economist at Redfin, explains that the surge in delistings is keeping housing inventory lower than it seems. “When tens of thousands of homeowners pull their homes off the market rather than accept a low offer, it effectively reduces the supply of homes actually available for buyers. That keeps sale prices elevated,” he notes.
While some sellers are cutting prices—typically by about $10,000—many are facing multiple reductions as homes take longer to sell. Zillow reports that listings are seeing an average of $25,000 in cumulative price cuts in October, matching the most significant discounts recorded since the company began tracking this data.
The housing market is entering its slow season. Although around 20% of delisted homes may be relisted, this is not likely to happen soon. Sellers often wait for the busier spring months to try again.
Interestingly, even though home prices are currently about 50% higher than five years ago, some sellers are now at risk of selling at a loss, especially those who bought recently. Redfin indicates that about 15% of delisted homes in September could sell for less than their original price—the highest proportion in five years.
On the brighter side, the supply of homes for sale is about 15% higher compared to last year, according to Realtor.com. However, this number might decrease soon due to seasonal trends and overall declining consumer sentiment among both buyers and sellers.
Pending home sales have seen a month-over-month uptick of 1.9% in October, primarily due to a slight drop in mortgage rates. However, these rates rose again in November, further complicating the market dynamics.
As the landscape changes, experts advise potential buyers to stay informed. The housing market remains unpredictable, but understanding these trends can help navigate the next steps. For deeper insights, check out reports from sources like the National Association of Realtors.
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