Realtor.com: Delistings Up by 47% in May

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Realtor.com, Santa Clara, Calif., reported delistings grew 47% in May year-over-year.

Year to date, delistings are up 35% from the same period last year, and 13 homes were delisted in May for every 100 homes hitting the market. That compares with 10 in the spring of 2024 and 2023 and six in 2022.

In part, the rise is due to the overall growth in active inventory, which was up 29% in June from the same time last year.

The increase in delistings follows a surge in price reductions–some sellers may have had unrealistic price expectations and are now willing to wait out the market rather than accept a lower price.

Nationally, 20.6% of home listings had price reductions in June, up 2.2 percentage points year-over-year. That’s also the highest June share going back to at least 2016.

“Unlike past housing cycles where falling prices pressured underwater homeowners to sell, today’s homeowners benefit from record-high levels of home equity, so they have the flexibility to wait it out,” said Realtor.com Senior Economist Jake Krimmel. “This allows many sellers to withdraw their homes from the market if their asking price isn’t met.”

Phoenix, Ariz., led the nation in delistings in May. Denver saw the highest number of price reductions. Just over a third of all listings saw a price cut in June.

Even as delistings become more frequent, inventory stands at a post-pandemic high. Nationwide, active listings were above 1 million for the second straight month.

And, homes are staying on the market longer. Median days on the market increased to 53. That’s up five days from this time last year and more consistent with pre-pandemic norms.