Sellers in some US metros are growing so frustrated with the state of the housing market they are de-listing their homes at an alarming rate.
Beyond slowing sales and flat prices, de-listings have become a defining feature of this summer’s housing market.
Nationally, de-listings rose 57 percent in July compared to the same time last year, reports Realtor.com.
This continues a sharp upward trend.
On a year-to-date basis, de-listings are up 41 percent.
The ratio of de-listings to new listings — a metric that captures the flow of homes in and out of the for-sale market — climbed to 0.24 in July.
For every 100 new properties listed for sale, 24 of them were removed from the market without a sale being completed. This compares to last year when only 17 out of 100 listings were delisted.
Miami is ground zero for this concerning trend. The Florida city saw 57 de-listings per 100 new listings in July.
In Miami de-listings reached an alarming high, with sellers not wanting to slash prices further
The Florida city saw 57 de-listings per 100 new listings in July
Following Miami, Phoenix AZ, saw 45 de-listings per 100 new listings.
Then Riverside, CA, which had 34 de-listings per every 100 new listings, then Tucson, AZ, with 33 de-listings per every 100 new listings.
This high rate of withdrawn listings indicates that sellers are increasingly reluctant to accept the current market pricing or conditions, opting to take their homes off the market instead.
This pullback could put downward pressure on inventory later in the year, reducing buyer choice even as market momentum slows.
Another contributor is that homes are currently taking longer to sell.
In August, homes typically stayed on the market for 60 days, which is seven days longer than the same time last year and now surpasses pre-pandemic levels for the second month in a row.
This was the 17th straight month of year-over-year increases in time on market.
Danielle Hale, Realtor.com’s chief economist, stated, “For both buyers and sellers, it is the local market conditions rather than national news that significantly affect pricing, competition, and timing.”
Following Miami, Phoenix AZ, saw 45 de-listings per 100 new listings, a record high
Phoenix saw a major uptick in de-listings as homeowners did not want to sell at a loss
Tucson, AZ, also made the list of areas with the most de-listings across the country
Riverside, CA, had 34 de-listings per every 100 new listings
It is not just de-listings that are alarming Americans.
The housing market across most of the US experienced what experts are dubbing a ‘cruel summer.’
Homebuilders felt the pinch too, slowing construction as the market stalled.
‘It’s the Anna Karenina housing market: Everyone is unhappy, but each in their own way,’ said Realtor.com senior economist Jake Krimmel.
Buyers, sellers, and builders each face unique challenges, yet the result is widespread dissatisfaction across the market.
As a result, the market was ‘grinding through a cruel summer,’ Kimmel said.
‘Buyers face steep affordability barriers. Sellers are losing market power but are futilely resisting.
“Builders are now slowing down despite the ongoing shortage of four million homes nationwide, with each regional market facing its own distinct challenges,” she added.
