Sellers delisting homes at fastest pace since 2020

More frustrated home sellers were giving up right in the middle of the all-important spring market, new data shows.

According to real estate brokerage Redfin, 5.8 percent of all home listings nationwide were taken off the market in April. This coincides with December, which saw the highest share of delisted homes since March 2020, when the pandemic hit and the housing market froze. Delistings in April increased by 3.8% compared to March.

The increase comes as high mortgage rates, rising gas prices and weak consumer confidence negatively impact housing demand. Sellers are no longer in the driver’s seat and can’t get the prices they want.

Atlanta was the city with the highest share of homes off the market in April, with 1 in 10 homes delisted. San Jose, California, followed with roughly 9%, followed by Los Angeles (7.8%), Dallas (7.8%) and Seattle (7.7%).

Mortgage rates were falling earlier this year, while the 30-year fixed rate briefly touched the 5% range in late February, according to Mortgage News Daily. They then rose rapidly when the war with Iran began and have remained at high levels ever since.

“Buyers know they have the power to negotiate, often offering below asking price and completing inspections, but some sellers won’t budge,” Redfin representative Patricia Ammann said in a statement.

House prices are falling, but they are still higher than they were a year ago, and have even started to strengthen recently.

“Interest rate-sensitive buyers who are more reliant on traditional mortgage financing are in markets that are seeing prices remain relatively stable,” Cotality chief economist Selma Hepp said in a statement. “Overall, fewer markets reported year-on-year price declines in April compared to previous months, indicating continued stability in the housing market.”

According to the National Association of Realtors, signed contracts on existing homes (pending sales) were up a very slight 1.4% in April compared to March. This was likely due to an increase in inventories, which were up about 6% from March.

Listings in some parts of the country are starting to pile up as new ones hit the market and others become established. Homes are sitting on the market longer, causing some buyers to give up as the all-important spring season approaches.

Some homeowners who took their homes off the market last year put them back on the market in April, hoping to take advantage of the spring market despite high mortgage rates, according to Redfin. The report found that 2.5 percent of homes on the market were relisted in April, the highest share in the previous two months since mid-2020, when there was a spike in housing demand.