Sellers aren’t getting the price they want, or they’re not getting offers at all. These are the cities where the most active listings were delisted.
When it comes to homeownership, nothing is easy. Whether you own one or want to buy one or sell one, it’s no cakewalk.
Hopeful home buyers are wrangling with higher interest rates, low inventory, and steep prices. During the pandemic, competition was fierce, with bidding wars and homes selling overnight.
But while buyers still face the challenges of unaffordability, sellers are now facing their own woes. Bidding wars and record-fast sales are gone: A recent analysis by Zillow (ZG) – Get Free Report finds that homes are now lingering on the market for a median of 54 days–45% longer than last year.
Even in high-price, high-demand San Francisco, a record share of home listings were taken off the market in November, CBS reports, and sellers are seeing offers drop as interest rates drag down the market.
In fact, Lawrence Yun, chief economist at the National Association of Realtors, predicts that prices in San Francisco are likely to register drops of 10–15% in 2023.
Yun predicts that 4.78 million existing homes will be sold in 2023 in the U.S., a decline of 6.8% compared to 2022 when 5.13 million home were sold.
Sellers are giving up, at least for now. A record 2% of U.S. homes for sale were delisted each week on average during the 12 weeks ending Nov. 20, compared with 1.6% one year earlier, according to an analysis by online real estate brokerage Redfin.
Sellers are taking their homes off the market because they’re not getting the price they want, or not getting offers at all. Redfin says that’s due to a sharp drop in homebuyer demand driven by rising mortgage rates and persistently high home prices.
The early days of summer are considered peak real estate season in most of the U.S., according to Rocket Mortgage, and November is a normal time for the market to slow down when there are fewer buyers. Redfin’s data shows that it’s normal for the number of delistings–listings that go from active to off-market without being sold–to peak before Thanksgiving.
And while the pace of delistings came down a touch between Nov. 20 and Nov. 27, declining to 1.9%, it’s still more than any year since 2015, Redfin’s data shows.
The cities with the most delistings are those that were real estate boomtowns in the pandemic–markets that saw home prices skyrocket as remote workers and people seeking more space fled crowded cities. Now, with many buyers priced out, these markets are among the fastest cooling in the country, Redfin says.
Sacramento, Calif., tops the list, with 3.6% of active listings delisted per week on average during the 12 weeks ending Nov. 27, up 1.6 percentage points from a year earlier–the largest increase among the metros Redfin analyzed.
Based on Redfin’s analysis of MLS data across 43 of the 50 most populous U.S. metropolitan areas (those with sufficient data) these are the homes with the most delistings during the 12 weeks ending Nov. 27, 2022.
1. Sacramento, Calif.
Share of active listings delisted: 3.6%Year-over-year change: +1.6 percentage points
2. San Francisco
Share of active listings delisted: 3.4%Year-over-year change: +1.1 percentage points
3. Oakland, Calif.
Share of active listings delisted: 3.3%Year-over-year change: +1.0 percentage points
4. Seattle
Share of active listings delisted: 3.2%Year-over-year change: +1.4 percentage points
5. San Jose, Calif.
Share of active listings delisted: 3.0%Year-over-year change: +0.9 percentage points
6. Boston
Share of active listings delisted: 2.9%Year-over-year change: +0.2 percentage points
7. San Diego
Share of active listings delisted: 2.9%Year-over-year change: +1.2 percentage points
8. Denver
Share of active listings delisted: 2.7%Year-over-year change: +1.2 percentage points
9. Los Angeles
Share of active listings delisted: 2.7%Year-over-year change: +0.8 percentage points
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10. Philadelphia
Share of active listings delisted: 2.7%Year-over-year change: +0.6 percentage points
11. Detroit
Share of active listings delisted: 2.6%Year-over-year change: -0.1 percentage points
Detroit was one of six metros that saw a decrease in the share of delistings from a year earlier.
12. Providence, R.I.
Share of active listings delisted: 2.6%Year-over-year change: +0.5 percentage points
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13. Anaheim, Calif.
Share of active listings delisted: 2.5%Year-over-year change: +1.1 percentage points
14. Indianapolis
Share of active listings delisted: 2.5%Year-over-year change: +1.0 percentage points
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15. Portland, Ore.
Share of active listings delisted: 2.5%Year-over-year change: +1.1 percentage points
16. Austin, Texas
Share of active listings delisted: 2.4%Year-over-year change: +1.5 percentage points
17. Las Vegas
Share of active listings delisted: 2.4%Year-over-year change: +0.9 percentage points
18. Phoenix
Share of active listings delisted: 2.4%Year-over-year change: +1.3 percentage points
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19. Washington, D.C.
Share of active listings delisted: 2.4%Year-over-year change: +0.5 percentage points
20. Nashville, Tenn.
Share of active listings delisted: 2.3%Year-over-year change: +0.8 percentage points
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21. New York
Share of active listings delisted: 2.3%Year-over-year change: +0.4 percentage points
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22. Warren, Mich.
Share of active listings delisted: 2.3%Year-over-year change: -0.5 percentage points
Warren was one of six metros that saw a decrease in the share of delistings from a year earlier.
23. Baltimore
Share of active listings delisted: 2.2%Year-over-year change: +0.3 percentage points
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24. Cleveland
Share of active listings delisted: 2.2%Year-over-year change: +0.4 percentage points
25. Houston
Share of active listings delisted: 2.1%Year-over-year change: +0.5 percentage points
26. Nassau County, N.Y.
Share of active listings delisted: 2.1%Year-over-year change: +0.2 percentage points
27. Riverside, Calif.
Share of active listings delisted: 2.1%Year-over-year change: +0.5 percentage points
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28. Minneapolis
Share of active listings delisted: 2.0%Year-over-year change: +0.4 percentage points
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29. Orlando
Share of active listings delisted: 2.0%Year-over-year change: +0.4 percentage points
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30. Chicago
Share of active listings delisted: 1.9%Year-over-year change: -0.5 percentage points
Chicago was one of six metros, along with Detroit, that saw a decrease in the share of delistings from a year earlier. Other metros that saw a decrease were: Newark, N.J., New Brunswick, N.J., and Montgomery County, Pa.
Cities with the fewest delistings were Pittsburgh and Cincinnati, at 1.3% and 1.4%, respectively, although for both cities, that was a slight increase compared with a year earlier.
