Home delistings soar 64% to the highest level in nearly a decade as buyers turn down sellers

[mahatmakanejeeves]

FINANCE·REAL ESTATE
Home delistings soar 64% to the highest level in nearly a decade as buyers turn down sellers

BY STUART DYOS
February 16, 2025 at 4:14 PM EST


Houses in the New York City borough Queens
LIAO PAN—CHINA NEWS SERVICE/VCG/GETTY IMAGES

Home delistings reached a nine-year high in December after the market was inundated with sellers but not enough buyers. … An influx of housing inventory has left homeowners pulling their listings off the market at a high rate as there are not enough buyers to keep up with sellers.

Home delistings in December spiked 64% from a year ago to 73,000, their highest levels since 2015, according to CoreLogic data cited by the Wall Street Journal.

While delistings typically surge in the winter, the magnitude of the latest jump indicates an unusually wide mismatch in supply and demand.

On the supply side, December saw 1.15 million U.S. homes on the market, a 16% increase from a year ago, according to the National Association of Realtors. … But demand has been weak. In 2024, home sales fell to the lowest level in nearly 30 years as mortgage rates stayed high.

{snip}

[lark]

1. People that need homes can't afford them.

The mismatch is between people able to afford homes and those who want to sell at the highest price.

[PoindexterOglethorpe]

2. I also see where interest rates are falling yet again.

I just hope my little place sells quickly when it is officially on the market.

[Vegan4life]

3. Its not just housing prices

Homeowners insurance and property taxes are rising year after year. Then there are maintenance costs.

My small town just did the required property reassessment. Home values went up 65 to 200 percent, and so taxes rise. This is unsustainable, especially for those on fixed incomes.

[Wonder Why]

8. That's not necessarily true. Taxes in many areas are unrelated to the appraisal

in that in many areas, like mine, when an appraisal is done, the tax rate is automatically adjusted down to make it revenue neutral. Now if you and I both own homes, and my house value goes up less than yours, my taxes might go down while yours go up. The city does not get twice as much money if everyone's assessment doubles. It gets no more unless it raises the tax rate.

As to cities raising tax rates, don't forget that people want more services whether they are rich or poor. And inflation applies to city costs like labor, purchasing, insurance and maintenance too. For renters, those cost increases are bundled into rent increases.

We have always bought homes below what we can "afford" so that when costs rise or income goes down, we can afford them without being forced to sell and move, especially if it's a down market.

[SARose]

4. Houses are not selling in my neighborhood

and no one is renting, either. Some homes have been on the market for 6 months. Seen a couple of deals fall through because home did not appraise at price listed.

We were set to sell our house in March/April. Nope. My mortgage is cheaper than an apartment right now.

[progree]

5. CPI and PCE inflation measures don't have house prices, home insurance, property taxes, or mortgage payments

The CPI and PCE don't include house prices, on the idea that it's an investment, not a consumption item. The CPI and PCE DOES include rent and "Owner's Equivalent of Rent" where they ask homeowners what they think they could rent their house for. But that's it. Home insurance that has been soaring like crazy, and not just in California and Florida? (our Twin Cities' 60 townhome complex's insurance more than tripled over the last 4 years). Not in the CPI nor PCE. Higher mortgage payments caused by higher home prices and higher mortgage rates in a toxic combination? Not in the CPI nor PCE. Higher property taxes driven by higher home prices? Ditto.

Higher financing costs on auto loans and credit cards? Ditto.

So CPI-land and PCE-land don't match the situation out there for most people.

The CPI is the Consumer Price Index https://www.bls.gov/news.release/cpi.nr0.htm

The PCE is the Personal Consumption Expenditures price index, the Fed's favorite inflation gauge bea.gov
Latest (Dec'2024): https://www.bea.gov/news/2025/personal-income-and-outlays-december-2024

[mwmisses4289]

6. It took us almost six months and five buyers

before we sold my moms home last year. A couple of the buyers were kinda sketchy, so we refused, and some other drama happened (mostly title issues) before we sold the house.
We have been in our current home for 10+ years, and have no intention of moving, can't afford to.

[bucolic_frolic]

7. Soon to be repriced in Crypto Bro Scrip

for modern houses that are held together with glue.

[roamer65]

9. The crash is underway.