A record 2% of homes for sale were delisted each week on average during the 12 weeks ending Nov. 20, according to a Redfin analysis of MLS data across 43 of the 50 most populous U.S. metro markets. During the same 12-week period in 2021, 1.6% of homes for sale were delisted each week on average. The share has decreased slightly since reaching record levels, declining to 1.9% during the 12 weeks ending Nov. 27.
According to Redfin, delisting is defined as a listing that went from active to off market without being sold. Homes delisted during the 12 weeks ending Nov. 27 could have been listed during the 12-week period or beforehand.
Redfin says sellers are taking homes off the market because they’re either receiving no offers for the price they want to sell for or receiving no offers at all. The decline in the number of offers is a reflection of cooling home buyer demand, driven by rising mortgage rates and high home prices. While mortgage rates have fallen since exceeding 7% in early November, the monthly mortgage payment on a median-priced home is 40% higher than a year ago, according to Redfin. Heather Kruayai, a Redfin agent in Jacksonville, Florida, says many sellers are having a difficult time grasping that the market is no longer at a frenzied pace and list prices are often too high.
Redfin says “pandemic boomtowns,” including Sacramento, California; Austin, Texas; Seattle; Phoenix; and Denver, are seeing the biggest jump in delistings. In Sacramento, 3.6% of active listings were delisted on average during the weeks ending Nov. 27, an increase of 200 basis points (bps) on a year-over-year basis. Austin (150-bp increase), Seattle (140-bp increase), Phoenix (130-bp increase), and Denver (120-bp increase) also experienced large year-over-year increases in the percentage of active listings delisted during the same 12-week period.
Each of the five metros with the largest increases also saw home prices skyrocket during the pandemic, as most increased in popularity among remote workers. However, with many buyers now priced out of the markets, such “pandemic boomtowns” are among the fastest cooling markets in the country, according to Redfin.
Six metros (Warren, Michigan; Chicago; Newark, New Jersey; New Brunswick, New Jersey; Detroit; and Montgomery County, Pennsylvania) experienced a decrease in the share of delistings on a year-over-year basis during the 12 weeks ending Nov. 27.
Expensive metros on the West Coast, including Sacramento, San Francisco, Oakland, Seattle, and San Jose, reported the highest share of delistings during the 12-week period. Each of the five metros recorded shares of for-sale homes delisted per week at or above 3%, according to Redfin. Redfin says expensive metros tend to have the highest share of delistings because the pool of buyers who can afford homes with high list prices is relatively small. As a result, it is likely that sellers in such markets will receive low interest for homes.
Pittsburgh had the lowest share of delistings during the 12-week period (1.3%), followed by Cincinnati (1.4%), New Brunswick (1.5%), Newark (1.6%), and Virginia Beach, Virginia (1.6%).