Home Delistings Surge 28% as Sellers Reject Low Offers
The real estate market in the U.S. is experiencing a significant change, marked by a 28% rise in home delistings. This notable surge in sellers choosing to pull their listings from the market reflects a challenging landscape for homeowners amid low offers and stagnant buyer demand.
Record High Delistings in September
In September, approximately 85,000 homes were delisted, marking the highest number for the month in eight years. This figure represents 5.5% of all active listings, the highest September rate seen in a decade. Many sellers are making this choice rather than accepting reduced offers.
Reasons Behind Increased Delistings
- Stale Listings: About 70% of listings were classified as “stale,” having been on the market for 60 days or more without an accepted offer. The typical delisted home had been listed for around 100 days.
- Low Buyer Demand: High mortgage rates and economic uncertainty have dampened buyer enthusiasm. Many are postponing significant purchases, including homes.
- Avoiding Losses: Roughly 15% of delisted homes were at risk of selling at a loss, the highest share in five years. Sellers are hesitant to let their properties linger without competitive offers.
- Rental Alternatives: Some sellers prefer to rent their homes rather than sell for lower prices, hoping for better market conditions later.
Market Dynamics and Price Impacts
The overall inventory of homes for sale increased by 8% year over year in September. Despite this rise, home prices have remained stable or even increased slightly, with an overall rise of about 2%. The uptick in delistings contributes to a tighter availability of homes on the market, countering the expected decline in prices due to high inventory levels.
Delistings by Metro Areas
The increase in delistings has varied across different metropolitan areas. Some of the most notable changes include:
| Metro Area | Year-over-Year Change in Delistings (%) | Share of Listings Delisted (%) |
|---|---|---|
| Virginia Beach, VA | 74.5% | 5.0% |
| Washington, DC | 53.9% | 5.5% |
| Dallas, TX | 52.1% | 7.5% |
| Houston, TX | 49.6% | 6.8% |
| Miami, FL | 25.4% | 7.8% |
Seller Behavior and Future Trends
Among delisted properties, a significant portion belonged to recent buyers. Approximately 34% of the homes pulled from the market were owned for two to five years. These homeowners often hold onto the expectation of returning to a seller’s market.
The increased delistings signal a shift in the housing market. With more sellers hesitant to accept lower offers, future trends will likely depend on how quickly buyer demand can rebound against prevailing economic factors.
