Weak Homebuyer Demand Causes Surge in Delistings
Buyer demand is failing to pick up, causing many sellers to pull their homes off the market altogether. According to data from real estate marketing platform Realtor.com, nationwide delisitings in May grew by 47% year-over-year. Year-to-date, delistings are up 35% from the same period in 2024.
The increase in homes being taken off the market is partially due to a boost in overall housing inventory, giving sellers more competition. In June, inventory was up by 28% year-over-year. In May 2025, 13 homes were delisted for every 100 homes placed on the market. Comparatively, in the spring of 2022, just six homes were delisted for every 100 homes that hit the market.
Which markets are seeing the most delistings?
The delisting trend is being seen mostly in Southern and Western states, where inventory has rebounded to above pre-pandemic levels. Phoenix led the nation in delistings in May, with 30 homes pulled from the market for every new home listed.
Phoenix also leads in price reductions, with 34% of all listings there carrying a price cut in June. On a nationwide basis, 20.6% of home listings had price reductions in June, which is up by 2.2 percentage points from last year, the highest share for June since 2016.
Homes are being delisted, but buyers still have plenty of options
Even though homes are being taken off the market, buyers still have a relative abundance of homes to choose from. Nationally, active listings topped 1 million for the second straight month in June. In fact, each of the top 50 metros posted active inventory gains year-over-year, led by Las Vegas at 77.6%, and then Washington, D.C., where inventory grew by 63.6%.
Additionally, homes are remaining on the market longer. The median number of days for homes on the market increased to 53 days in May, which is five days longer than a year ago.
Less buyer demand has been causing listings to pile up for a while
- Nationwide Home Listings Hit a Record of Nearly $700 Billion: As of April, the total value of home listings has grown by more than 20% year-over-year.
- Home Listings Outpace Buyer Demand in April: In April, new listings grew by 7.6%.