-
Why are US home sellers delisting instead of lowering prices?
Many US sellers are delisting their homes because they have significant equity in their properties, allowing them to wait for better market conditions or higher offers. Instead of reducing prices, sellers prefer to hold firm, hoping the market will turn in their favor. This trend is driven by record home equity levels and a desire to avoid selling at a loss.
-
How does increased delisting affect the housing market?
When more homes are delisted, the available inventory decreases, which can reduce competition among buyers. This may slow down price declines and create a less buyer-friendly market. It also signals that sellers are confident prices will stabilize or rise again, influencing overall market sentiment.
-
Are rising mortgage rates influencing seller behavior?
Yes, higher mortgage rates make borrowing more expensive, which can dampen buyer demand. As a result, sellers who are confident in their property’s value may choose to wait rather than lower prices, expecting demand to pick up once rates stabilize or decrease.
-
Will US home prices drop significantly if sellers keep delisting?
While delisting reduces the number of homes on the market, it doesn't necessarily mean prices will drop significantly. Sellers holding out can support prices temporarily, but if demand weakens further, prices could eventually decline. The overall impact depends on broader economic factors and buyer activity.
-
What are the risks for sellers who delist instead of lowering prices?
The main risk is that if market conditions worsen or demand drops sharply, sellers may find themselves unable to sell at their desired prices later. Delisting can also lead to reduced market visibility, making it harder to find buyers when they decide to re-list.