According to The Washington Post, delistings rose 52 per cent in September compared to the previous year, after reaching a peak of nearly 72 per cent annual growth in August.Â
This trend is significantly outpacing inventory growth by threefold.
The ratio of delistings to new listings has also increased dramatically. For every 100 new listings in August, 28 homes were removed from the market without selling, up from just 16 in August 2024.
Jake Krimmel, a senior economist at Realtor.com, describes this phenomenon as emblematic of the current market challenges.
“Delisting is taking a home off the market without selling,” Mr Krimmel said.
“It’s emblematic of a failed transaction, and it is also a kind of metaphor for the market right now.”
The primary driver behind this trend is the so-called “lock-in effect,” where approximately 70 per cent of current homeowners have mortgage rates of 5 per cent or lower, according to KPMG.
With current 30-year fixed rates averaging 6.17 per cent, many homeowners are reluctant to give up their favourable financing terms.
Despite these delistings, active listings have increased for the 24th consecutive month in September, though the pace has slowed every month since May.
This plateau comes at a time when housing demand remains strong across the country.
The S&P Cotality Case-Shiller U.S. National Home Price Index showed August prices rose 1.5 per cent compared to the previous year, a slight decrease from the 1.6 per cent rise recorded the month before.
Major metropolitan areas are experiencing particularly high delisting rates.
In Miami, approximately 55 homes were delisted for every 100 new listings.
Houston saw about 40 delistings per 100 new listings, while Tampa recorded around 33.
The trend reflects broader economic uncertainty, with many homeowners waiting to see what 2026 brings and hoping for lower mortgage rates as the Federal Reserve continues its rate-cutting cycle.
The Fed recently issued another quarter-point cut, which typically makes mortgages more affordable over time.
