More delistings show buyers may have reached their limit on price


This article was shared here with permission from Mike DelPrete for Inman Intel, a data and research arm of Inman offering deep insights and market intelligence on the business of residential real estate and proptech. Subscribe today.

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The number of homes listed for sale and then delisted — taken off the market without selling — is rocketing to all-time highs.

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Why it matters: Rising delistings are a sign of a pricing imbalance, with asking prices higher than what buyers are willing to pay.

  • National delistings, as a percentage of total listings, are roughly double the normal rate, bucking seasonal trends, and accelerating rapidly.

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It all starts with pricing — and new listings coming to market are being priced very high.

  • The median price per square foot on new listings is at record highs.

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Another sign of a pricing imbalance are price drops, the number of which are also rising.

  • The percentage of active listings with price reductions is higher than it’s been for years, and is increasing.

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And for the houses that are selling, it’s taking longer.

  • The median number of days on market is slowly increasing and is higher than past years.

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The bottom line: The surge of new listings coming to market are overpriced, leading to a rapidly increasing number of delistings and price drops.

  • This is the start of a price correction; sellers are bringing more inventory to market, but with “aspirational pricing” that buyers are not willing to pay.
  • The record number of pricing corrective measures will likely lead to an overall correction – lower prices – as supply and demand continues to rebalance.





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