Late fall is typically the time when most homes disappear from the market, as previously unsuccessful sellers prefer not to sit out the weakest winter months. However, delistings, which are reported with a one-month lag, rose 45.5% in October year-to-date and nearly 38% since October 2024, according to a new report from Realtor.com.
The report calls it an “unusually high rate” as this is now the highest delisting year since Realtor.com began tracking in 2022. Delistings began increasing in June and have remained elevated for five consecutive months. About 6% of active listings are removed from the market each month, which typically only happens in the dead of winter.
Additionally, more and more potential buyers are turning to what Realtor.com calls “haven markets.” These are areas where property prices are much cheaper and where there was no price increase in the early years of the pandemic.
“Increasing delistings and the growth of refuge markets are driving the push and pull that is driving today’s real estate market,” said Danielle Hale, chief economist at Realtor.com, in a press release. “This dynamic reflects how higher rates and years of rapid price growth have rewritten the rules for buyer and seller engagement.”
Hale predicts a gradual improvement next year, with potentially lower mortgage rates and more consistent supply leading to an increasingly balanced market between buyers and sellers.
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Some of the cities that saw the biggest price increases over the past five years are now seeing the highest proportion of frustrated sellers. Miami, Denver and Houston had the highest proportion of homes delisted compared to newly listed homes.
According to Realtor.com, the median listing price nationally in November was 0.4% lower than November 2024. However, it was still 36% higher than November 2019, before the pandemic. The number of new entries only increased by 1.7% compared to the previous year.
Price increases are much steeper in refuge markets like Grand Rapids, Michigan, where they are up 5.5% year-over-year, and St. Louis, where they are up 5%. Cleveland, Milwaukee and Pittsburgh round out the top-performing sanctuary markets, according to the report. Prices in these markets are still 20-30% below the national median.
Another worrying trend this fall: canceled contracts. According to Redfin, about 15% of home purchase contracts were canceled in October, compared to 14% a year ago. Cancellations are now well above pre-pandemic levels.
Regionally, San Antonio had the most canceled deals, with more than one in five (21%) pending home sales falling through in October. This was followed by Fort Lauderdale, Florida (20%), Fort Worth, Texas (19.7%), Las Vegas (19.2%) and Jacksonville, Florida (19.2%).
The report cited high housing costs and economic uncertainty.