Home Sellers Pulling Listings at Fastest Rate Since 2020

CNBC reported Wednesday that home sellers delisting their properties are doing so at the highest rate in six years, with fresh data showing the spring housing market is buckling under the weight of elevated borrowing costs and fading buyer appetite.

Delistings Reach a Six-Year High

Real estate brokerage Redfin found that 5.8% of all active US home listings were withdrawn from the market in April. That figure matches December’s rate and equals the highest share of delistings recorded since March 2020, when pandemic uncertainty brought housing activity to a near standstill. Month over month, April delistings climbed 3.8% above March levels.

Atlanta led all major metros, with one in every ten listed homes pulled from sale. San Jose followed at roughly 9%, with Los Angeles, Dallas, and Seattle each recording delistings near 7.8% to 7.7%. The pattern points to broad geographic stress rather than isolated pockets of weakness.

Background: Rates Spiked After a Brief Reprieve

Earlier this year, mortgage conditions had briefly improved. The 30-year fixed rate dipped into the 5% range at the end of February, lifting hopes for a more active spring season. That window closed quickly. Rates surged again following the outbreak of the conflict with Iran and have stayed elevated since. The resulting affordability squeeze, compounded by high gas prices and slipping consumer confidence, has stripped sellers of the leverage they once commanded.

A Redfin agent quoted in the brokerage’s release noted that buyers are now regularly submitting below-asking offers and demanding inspections, but that many sellers are still refusing to lower their expectations. That standoff is driving the exodus of listings.

Inventory Builds as Sellers and Buyers Both Hesitate

Despite the surge in withdrawn homes, overall inventory actually rose. The National Association of Realtors noted that pending sales edged up 1.4% in April from March, likely reflecting a near 6% inventory increase over the same period. New listings are still arriving, but properties are sitting longer before attracting serious interest.

Cotality chief economist Selma Hepp told CNBC that markets relying heavily on rate-sensitive buyers are experiencing price stagnation, though fewer metros are now posting year-over-year price declines than in earlier months. Redfin also found that 2.5% of April listings were relistings, homes that owners had previously pulled and then returned to market hoping to catch spring-season traffic.

That gamble appears increasingly risky as buyer hesitation persists and the prime selling season winds down.

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