As 2022 has marched forward, it’s become increasingly clear that the slowdown in the U.S. housing market is going to stick around for at least a little while. That reality is causing some home sellers to throw in the towel.
In many cities, large numbers of sellers are removing their listings from the market, according to real estate brokerage firm Redfin. In fact, an average of 2% of U.S. homes for sale were delisted each week for the three months that ended on Nov. 20. That is a record high.
In a summary of the findings, Redfin real estate agent Heather Kruayai in Jacksonville, Florida, says:
“Some sellers are having a hard time grasping that we’re not in a housing-market frenzy anymore — it’s tough for them to swallow that they missed the boat on getting a high price. By the time sellers realize their listing was priced too high, it has already been on the market for too long and is considered stale.”
Among the 50 most populous metro areas in the U.S., 10 have seen an especially large number of sellers delisting their homes, likely due to a dearth of offers — or in some cases, no offers at all — Redfin says. Following are the cities where sellers are regrouping and waiting to fight another day.
Denver
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 2.7% per week, on average
Denver is one of the “10 Housing Markets Where Bidding Wars Are Disappearing.”
As we reported, Gene Myers — chairman of Thrive Home Builders in the Denver area — says the Mile High City is “definitely” facing “a hard landing for housing.”
Los Angeles
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 2.7% per week, on average
Some sellers in the City of Angels are having a devilishly tough time unloading their homes.
As we have reported, many residents are getting out of Los Angeles and moving to other places. As potential buyers leave the city, more sellers are waving the white flag.
Philadelphia
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 2.7% per week, on average
It probably sounds incredible, but Philadelphia is one of many major U.S. cities where housing prices — after adjusting for inflation — never returned to the peak they achieved just before the Great Recession of 2008.
And prices probably won’t hit that mark in the near future now that the market is cooling and sellers are heading for the sidelines.
Boston
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 2.9% per week, on average
Perhaps Boston housing just became too expensive. Or maybe people are leaving the city because it’s one of the “The 10 Worst U.S. Cities for Drivers.”
Whatever the reason, more buyers are having second thoughts about purchasing a home at today’s still-steep prices, and more sellers are pulling their homes off the market as a result.
San Diego
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 2.9% per week, on average
San Diego is one of “10 Markets Where Home Prices Are Plummeting.” As we reported last month, more sellers in the city have been offering to pay closing costs for buyers.
Apparently, that hasn’t been enough, however. Now, sellers are taking their homes off the market to wait for better days.
San Jose, California
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 3% per week, on average
Housing is always notoriously expensive in San Jose, but things may finally become a bit more affordable soon.
In fact, San Jose is No. 1 on the list of “3 Markets Where Home Prices Have Dropped by More Than 10%.”
Seattle
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 3.2% per week, on average
Selling homes in Seattle already has become more difficult, but many homeowners worry that even worse days lie ahead.
David Palmer, a Seattle Redfin real estate agent, said in the summary of Redfin’s findings that many of his sellers have pulled their listings from the market:
“Usually, sellers who pull their listings off the market in the fall do it with the intention of listing again in the spring. But with the word ‘recession’ out there, there’s not as much optimism about spring being a better market. Now people are talking about trying again in another year or two once the economy improves.”
Oakland, California
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 3.3% per week, on average
Oakland is one of “10 Pandemic Boomtowns Where Housing Now Is Cooling.” As in many other markets, housing prices in Oakland simply are coming back to earth after soaring to the heavens for a couple of years.
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San Francisco
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 3.4% per week, on average
Like many cities in California, San Francisco has consistently lost residents in recent years.
For the three-month period that ended in October, San Francisco saw more people move out than any other U.S. city. If you live in San Francisco and plan to join the exodus, you may have to wait until market conditions improve somewhat before you can unload your home.
Sacramento, California
For-sale homes in this market that were delisted during the 12 weeks ending Nov. 27: 3.6% per week, on average
California’s capital city leads the nation in housing market delistings.
In a sign of how dramatically things have shifted in Sacramento, Redfin says there was no year-over-year price growth in the city’s housing market during October.
By contrast, last spring, prices were rising by more than 29% in Sacramento.