After the frenzied homebuying rush of the pandemic and years of a seller’s market, the tide is finally starting to turn.
Housing inventory is rising nationwide, price cuts are becoming more common, and buyers are beginning to see more choices on the market. But home prices are still high.
That’s because instead of dropping their home price in order to attract a buyer, a rising number of homeowners are choosing to yank their listings off the market altogether, according to a The Washington Post report [1].
The article cited Realtor.com data that said nationwide delistings rose 52% in September compared with the year before.
If sellers are trying to get out of their home, why aren’t they lowering their prices instead of completely delisting?
The delisting trend signals imbalance between buyers and sellers, and could lead to a deadlocked housing market. While general inventory is up and price cuts are increasing, the growth of inventory is slowing and the difference between the number of listings and delistings is narrowing: for every 100 newly listed homes nationally in August, 28 previously listed homes were taken off the market, an increase from 16 in August 2024.
Some homeowners who secured their property at a good mortgage rate — perhaps during the pandemic’s historically low rates — may not be in too much of a rush and have no reason to lower the price just to get a buyer more quickly.
“Maybe you’re locked into payments that are relatively affordable for you,” Jake Krimmel, senior economist at Realtor.com told CBS MoneyWatch in August. “You would prefer to sell, but not at a price that you’re not comfortable with [2].”
Sellers may also expect to sell their home at the same high price they purchased it for during the pandemic, but the market is cooling off: Realtor.com says in October, 20.2% of home listings had price reductions, up 1.6 percentage points from last year, and homes are sitting on the market for an average of 63 days, which is five days longer than last year [3].
It’s clear that a rising number of sellers would rather delist than cut prices, Krimmel says. “The thing that’s going to prevent buyers and sellers from getting closer together is if all the sellers who maybe could or should be lowering their prices to meet the demand where it is are instead taking their homes off the market altogether,” he told CBS.
The narrowing difference between number of delistings and listings is a housing market move that should raise flags for both prospective buyers and sellers, as it could affect timelines for listing and purchasing. But there are ways both buyers and sellers can navigate and even take advantage of the current housing market.
If you’re considering selling, it’s time to manage expectations and accept that you might not be able to sell your home at the high price you expected. A cooling market arms buyers with more options. Sellers should be ready for an extended listing and be ready to reduce the asking price if needed.
How can you keep your home competitive? Choose an agent well-versed in the “softer” housing market, and don’t underestimate the value of properly staging your home. If you don’t reduce the asking price, offering seller concessions — such as closing fee coverage or inspection coverage — can be attractive to buyers.
If you’re a buyer, be ready for more inventory choices, price reductions, and more room to negotiate lower prices or concessions with sellers — advantages that all depend on where you’re looking. Prices may be close to flat year over year, but they may spike in certain hot spots. Plus, the median sales price for a home in the U.S. was $440,387 in October, according to Redfin, a price that not many Americans can afford [4].
To make the most of a shifting market, be sure to get your finances in order early: Secure mortgage pre-approval, understand your budget, and be ready to move fast when you find the right home. Focus on listings with price reductions or motivated sellers, but don’t assume a discounted home has hidden problems.
It’s also smart to check whether a property has been delisted in the past, a sign that the seller might back out or pull the listing in the middle of negotiations.
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The Washington Post (1); CBS MoneyWatch (2); Realtor (3); Redfin (4
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.