A record number of homes are being delisted as sellers face a sharp drop in demand, according to real estate brokerage Redfin.
On average, 2% of homes for sale were delisted without being sold each week during the three months ended Nov. 20, Redfin said. That compares to 1.6% a year earlier and is yet another sign that the decade-long housing boom is over.
In a complete reversal from the pandemic buying frenzy that prompted bidding wars and drove home prices to record highs, demand has slumped as mortgage rates have soared this year. Although borrowing costs have dipped slightly in recent weeks, many potential buyers have already been sidelined. As a result, sellers are increasingly taking their homes off the market after receiving low offers they aren’t willing to accept — or no offers at all.
I moved to NJ in 1990 after a housing dip. Realtors told us no homes had been sold in my development of 102 homes in two years. Sellers were waiting for recovery.
They tell us the average mortgage life is 7 years. With a growing family many accumulate equity and then move to something larger. In my current St Louis suburb its noticeable that fast rising prices have allowed many to relocate in as little as three years. On my culdesac of 10 houses three were sold last year. A very hot market.