Buyer options expand as inventory climbs 28.9%, hitting post-pandemic high
Delistings surge 47% as sellers pull bak amid market uncertainty
Price reductions reach the highest level in nearly a decade
There can be little argument that the COVID-19 pandemic and its aftermath distorted the housing market. The median home price surged nearly 50% in that five-year period, according to the National Association of Realtors. Home prices rose because of increased demand and historically-low mortgage rates.
Now that mortgage rates have normalized to around 6.5%, an increasing number of buyers can’t afford those prices and have continued to rent. Normally, sellers would respond by cutting their asking prices, but according to an industry report, that isn’t happening.
While active listings are surging and giving buyers more choice than at any point since the pandemic began, Realtor.com’s June Housing Trends Report found an increasing number of sellers are withdrawing their homes from the market, unwilling to settle for less than peak-era prices.
In June, the number of active listings nationwide reached 1,085,520, a 28.9% increase year-over-year and a 4.8% rise month-over-month, marking the 20th consecutive month of inventory growth. Despite being about 11% below June 2019 levels, the surge has significantly narrowed the pre-pandemic inventory gap.
However, that isn’t bringing down prices, at least not yet. One reason may be sellers unwilling – or perhaps unable – to compromise on price. According to the report, delistings rose 47% year-over-year in May and are up 35% year-to-date.
That means many sellers are testing the waters but quickly pulling back if they don’t get their desired price. In fact, delistings have grown faster than active inventory, signaling growing seller impatience.
Testing the market
“The market is a study in contrasts,” said Danielle Hale, chief economist at Realtor.com. “Buyers are seeing more choices than they’ve had in years, but many sellers, anchored by peak price expectations and strong equity positions, are stepping back if they don’t get their number.”
In some markets like Phoenix, Miami, and Riverside, this trend is even more pronounced, suggesting a reserve of latent supply that could return later, possibly at unchanged price points. Nationally, the delistings-to-new listings ratio hit 13% this spring, a substantial rise from 10% in both 2023 and 2024 and 6% in 2022.
This indicates that for every 100 new homes listed, 13 were delisted, homes likely withdrawn due to slow activity or buyer pushback.