The amount of homes listed for sale and then delisted – taken off the market without selling – is rocketing to all-time highs. Rising delistings are a sign of a pricing imbalance, with asking prices higher than what buyers are willing to pay.
Likely a silly question, but I'll ask it anyway for clarity: Are these delisted stats based on PID data or MLS numbers? Listings are commonly taken off the market (delisted) and then re-listed shortly afterward under a new MLS #. PID status data would reveal a true "delist" situation, while MLS numbers showing as "canceled" would skew the data.
Rebuilt is observing similar dynamics in the off-market space as well. Elevated interest rates have widened bid/ask spreads. A segment of sellers are effectively placing limit sell orders above the market clearing price, tolerating modest price drops, and then removing themselves from the order book. There is intent & willingness to sell, but not enough motivation to force price taking vs making.
Ryan Bowman
1mo
Interesting. There’s always been a percentage of agents that will just take the listing even if it’s overpriced and “hope” to beat up the seller for price reductions however it seems in the changing market there are definitely more agents with this approach (or simply don’t know the area or have the experience to price it correctly).
Hank Miller, SRA
1mo
Sellers being sellers…I paid…Zillow says…I added blah blah…the agent at Bunko said…when I refi’d the appraisal…the mailer said…it’s a seller’s market…and any of the 100 other nitwit answers. Buyers are the market, listen or stagnate.
Mike DelPrete it seems problematic to make a generalization about the market nationwide. For example, I would agree that in Florida listings are sitting on the market, price reductions, etc. But in the suburbs of Chicago it’s quite the opposite. Anything between $300-$400k in move-in ready condition is still getting multiple offers, going under contract extremely fast, and some deals are even containing appraisal shortfall riders. All this continues to drive prices higher in this regional market. It might be helpful to break down the analysis by geographics and price point to offer a more concise observation. No harsh criticism intended. Just a polite suggestion. Your posts are always great.
Ryan Berlin
1mo
Mike DelPrete great stuff as usual. One question I have (some overlap to those of others) is whether "de-listed" means "cancelled" or "expired" (or both). We're looking at the data for Metro Vancouver's market and while we've seen a bit of an uptick in cancelled listings it's nothing compared to what your chart shows. (Further, cancelled listings as a share of total inventory in Vancouver--the latter of which is at its highest point in 4 years--are very average here at the moment.)
Out of curiosity, why aren't regular lenders and mortgage companies also offering #Buydowns? This happens all the time in the new home industry, why not for existing homes?
Trisha Verseane
1mo
Very insightful, thank you for sharing your thoughts. It's always refreshing to hear different perspectives and ideas. Your experience and knowledge in this area is truly valuable, and I appreciate you taking the time to share it with us. Your insights have definitely sparked some new ideas and considerations for me. Keep up the great work, and I look forward to connecting with you more in the future!
Hank Miller, SRA
1mo
follow up to earlier comment - how many are expiring/withdrawn because of this? I've had a good 10 of these emails over the last two weeks...
I think it's also a sign of change needed for how some agents service their clients. I've had a few friends de-list out of frustration with their agents. Overpricing is one factor and the ripple effect is having to market/prospect buyers for those overpriced homes. Which you can't just get anymore by listing a nice home in a desirable neighborhood.