Housing Market Shift: Surge in Delisted Homes Signals Cooling Trend
Updated: Feb 20
In December 2024, the U.S. housing market experienced a notable shift, with nearly 73,000 homes—about one in ten listings—being delisted after failing to attract buyers. This marks a 64% increase from the previous year and the highest rate since 2015.
While it's typical for delistings to rise during winter due to decreased buyer activity, the current surge suggests a deeper imbalance between supply and demand. Despite fewer buyers, home values remain high, partly because approximately two-thirds of homeowners have mortgages with rates below 4%, making them reluctant to sell. Consequently, the inventory of available homes grew by 16% year-over-year in December, reaching 1.15 million.
The new-home market is also affected, with a 46% increase in newly completed homes since December 2023, many of which remain unsold. This oversupply, combined with cautious buyers, has raised concerns among investors, leading to significant discounts in the share prices of housing landlords and indicating potential future price corrections.
For homeowners considering selling, this trend highlights the importance of reassessing market strategies. Pricing homes competitively and ensuring they are in prime condition are essential steps to attract the limited pool of buyers. As the market continues to evolve, staying informed and adaptable is crucial for both sellers and buyers navigating these changing conditions.
Sources:
P.S. Don’t forget to follow us on Instagram @HelloSaltyDog for more updates, tips, and Mimi’s adventures!
////////////////////////////////////////////////////////////////////////////////////////////////////////////
Salty Dog Real Estate Group | Los Angeles Real Estate | Audrey Patsiga | 626.216.4216
Disclaimer: The information provided is for informational purposes and should not be considered as professional advice.