In the final month of last year, a notable shift occurred in the U.S. housing market: Nearly 73,000 homes were taken off the market after failing to find buyers, representing a 64 percent increase from the previous year.
This trend, highlighted by data from CoreLogic and reported by the Wall Street Journal, reflects a growing hesitation among homeowners to sell amid unstable market conditions.
Why It Matters
The surge in home delistings represents not just a seasonal adjustment but a significant shift in homeowner sentiment.
With mortgage rates lingering near historic highs—currently, an average of 6.76 percent for a 30-year fixed-rate mortgage—and home prices stubbornly elevated, the decision to pull listings off the market could signal a broader cooling down of the real estate market.
But it could also suggest that many homeowners are waiting for more favorable conditions, possibly anticipating better selling opportunities in the spring.
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What To Know
This pattern of pulling listings is the most significant since 2015, according to Wall Street Journal reporting.
Dr. Selma Hepp, chief economist at CoreLogic, told Newsweek that delistings typically peak at year’s end, though December’s numbers were higher than normal.
“… December’s jump was really higher than we’ve seen since the onset of the pandemic and suggests sellers took a step back in light of slow home buyer demand and more requests from buyers for price discounts and concessions,” Hepp said.
Jody Kahn, senior vice president of research surveys, and Cara Lavender, manager of research surveys, at John Burns Research & Consulting work on a comprehensive monthly survey of approximately 1,200 resale agents. Their research offers insights into the challenges within the housing market, particularly in how pricing strategies are misaligned with market realities.
“Plenty of agents indicate that sellers are not realistically pricing their homes to the current market value and adjusting for the condition of the home to sell,” the pair told Newsweek.
In 2024, the inventory of unsold homes, including newly completed units, rose dramatically. According to the National Association of Home Builders (NAHB), builders completed 118,000 new homes in December alone, a 46 percent increase from the previous year. Yet many of these homes remained unsold due to high prices and the cost of mortgages. This glut in inventory has forced many sellers to withdraw their listings in hopes of relisting them under more favorable conditions.
The landscape of the U.S. housing market has been challenging throughout 2024, with home sales dropping to their lowest levels in nearly three decades. A January report from the National Association of Realtors (NAR) found total U.S. home sales in 2024 were the lowest since 1995.
Despite an increase in inventory as reported by NAR—with 1.15 million homes on the market in December, roughly a 16 percent increase from 2023—demand has not kept pace. The mismatch between supply and demand may have led to a high rate of delistings, as homeowners opt to wait out the market turbulence.
What People Are Saying
Dr. Selma Hepp, chief economist at CoreLogic, told Newsweek: “… Another reason for a step back could be that sellers wanted to wait and see how spring home buying season goes, and if mortgage rates fall, which would bring more home buyers and competition back in the market.”
Jody Kahn, senior vice president of research surveys, and Cara Lavender, manager of research surveys, at John Burns Research & Consulting, told Newsweek: Some sellers still want to list at pricing that a neighbor may have received at the peak of the pandemic-driven housing boom. Agents are frustrated that sellers don’t accept their pricing recommendations based on a Competitive Market Analysis.
Agents report that sellers won’t or can’t afford to make improvements to homes listed for sale, but buyers are reluctant to purchase homes that are not move-in ready. Many first-time buyers are stretching to buy that first home, and they don’t have the equity or cash to take on expensive renovations. Sellers may delist when they realize they will have to reduce their price or make improvements to sell.
Lawrence Yun, NAR chief economist, said in a press release: “Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve. When combined with elevated home prices, housing affordability remains a major challenge.”
Glenn Kelman, CEO of Redfin, said on “The David Lin Report”: “The parts of the United States that were the hottest, literally and in the market, Texas and Florida, now are seeing major price cuts, homes getting delisted because they can’t sell. Almost every real estate broker is having conversations with home sellers about when you’re going to mark this property down so we can get it to move.”
What Happens Next
Kahn and Lavender pointed to the personal and financial dilemmas that both sellers and buyers face. “Potential sellers may delist when they can’t find another home that is nicer or better than their current home, and they also would pay as much or more than their current monthly payment due to elevated home prices and mortgage rates,” they told Newsweek.
As the market progresses into the new year, analysts will be looking toward the spring season—traditionally the peak time for home sales. If the delistings continue to rise, or if the inventory of unsold homes builds up, it could further destabilize the market.