Sellers are pulling homes off the market at the fastest pace since 2020

• Delistings increased 3.8% compared to March, coinciding with mortgage rates jumping sharply after the start of the war with Iran following a brief dip to 5% in late February
• Pending home sales rose only 1.4% month-over-month in April despite inventory increasing nearly 6%, indicating weak demand as homes sit on the market longer
• Relisted homes (previously withdrawn properties returning to market) represented 2.5% of April listings, tied for the highest share on record as sellers attempted to capitalize on spring market conditions

Market Summary: U.S. Housing Market Delistings Accelerate

Key Findings:

Home sellers are withdrawing listings at the fastest rate since 2020, signaling mounting pressure in the U.S. housing market. According to Redfin, 5.8% of all home listings were pulled off the market in April, matching December for the highest delisting rate. Month-over-month delistings increased 3.8% from March.

Market Drivers:

The surge in withdrawn listings reflects deteriorating market conditions driven by elevated mortgage rates, higher gas prices, and weakening consumer confidence. After briefly touching 5% in late February, 30-year fixed mortgage rates spiked following the outbreak of war with Iran and have remained elevated since. Atlanta experienced the highest delisting rate among major markets.

Market Dynamics:

The housing market has shifted decisively in favor of buyers, who now possess significant negotiating leverage and frequently offer below asking prices. Sellers are refusing to accept lower bids, choosing instead to pull listings. Despite this, home prices remain above year-ago levels and have recently shown signs of strengthening.

Supply Indicators:

Total housing inventory rose nearly 6% in March, with homes staying on the market longer in certain regions. Relistings accounted for 2.5% of April inventory, matching the highest rate on record as some homeowners attempted to capitalize on the spring selling season despite unfavorable rate conditions.

Transaction Activity:

Pending home sales posted a modest 1.4% increase in April versus March, likely attributable to higher overall inventory. However, the critical spring selling season is concluding with frustrated sellers increasingly abandoning their listing attempts.

Market Outlook:

Markets heavily dependent on mortgage financing show flat price trends, though fewer markets reported year-over-year price declines in April, suggesting continued stabilization.