More delistings indicate buyers may have hit price ceiling

This article is shared here with permission from Mike DelPrete of Inman Intel, the data and research arm of Inman that provides insights and market intelligence on the residential real estate and proptech businesses. Subscribe now.

The number of homes listed for sale and then delisted (removed from the market without selling) is soaring to record highs.

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why this is important: An increase in delistings is a sign of a price imbalance, with asking prices being higher than buyers are willing to pay.

• National delistings as a percentage of total listings are roughly double normal levels, bucking seasonal trends and accelerating rapidly.

It all starts with pricing – Newly launched products on the market are priced very high.

• Median price per square foot for new listings hits record high.

Another sign of pricing The imbalance is that prices are falling, but quantities are also rising.

• The share of active listings with price reductions is higher than it has been in years and is increasing.

for the house That yes Selling takes a long time.

• Median days on market are slowly increasing and are higher than in previous years.

bottom line: The surge in new listings and overpriced properties has led to a rapid increase in the number of delistings and falling prices.

• This is the beginning of a price correction; sellers are putting more inventory on the market, but buyers are not willing to pay the “ideal price.”
• As supply and demand continue to rebalance, a record number of price adjustments could lead to an overall correction – lower prices.