Redfin says more home sellers are pulling listings from the market

Weak demand from buyers, weak home prices, and general uncertainty in the economy combine to make home sellers change their minds and exit the market.

Nearly 85,000 U.S. sellers took their homes off the market in September, a 28% increase from September 2024 and the highest level for that month in eight years, according to Redfin.

Sellers are delisting their listings because many listings are outdated, sitting on the market longer and longer. Redfin reported that 70% of listings in September were on the market for 60 days or more.

Homeowners see prices weakening significantly and prefer to wait rather than accept a low offer. Prices in September rose 1.3% year over year, down from a 1.4% rise in August, according to the S&P Cotality Case-Shiller US National Home Price NSA Index.

“Frequent delistings leave inventory lower than it appears on paper,” said Asad Khan, chief economist at Redfin. “When tens of thousands of homeowners take their homes off the market rather than accept a low offer, it effectively reduces the supply of homes actually available to buyers. This keeps sales prices high.”

Some sellers reduce prices – even several times. The typical price reduction is around $10,000, but multiple reductions are becoming more common as homes take longer to sell, according to Zillow. The typical listing saw cumulative price reductions of $25,000 in October, matching the largest discounts Zillow has ever recorded.

The housing market is now heading into its slowest season. While 1 in 5 homes that were delisted are relisted, that may not happen for several months, as sellers will likely wait for the busier spring season to try again.

Home prices are still 50% higher than they were just five years ago, but some sellers who have bought in the past few years are facing potential losses. Nearly 15% of homes that were delisted in September were at risk of being sold at a loss, the highest percentage in five years, according to Redfin.

The supply of homes for sale is now about 15% higher than it was a year ago, according to Realtor.com, but that will likely shrink in the coming weeks, both because of the season and because of weak consumer sentiment among buyers and sellers alike.

Pending sales in October, which are based on signed contracts, rose 1.9% month-over-month, essentially flat compared to a year ago, according to Realtors. The monthly rise may have been caused by a slight decline in mortgage interest rates, which then rose again in November.