Thousands of sellers are taking their homes off the market with consumer confidence plunging
The residential market faced a paradox in September: home inventories rose while prices continued climbing, a disconnect fueled by sellers' unwillingness to negotiate and deteriorating consumer sentiment about the broader economy.
Nearly 85,000 United States sellers delisted their homes that month, representing a 28% jump from the prior year and the highest September figure in eight years, according to Redfin data.
The pattern reflects a market increasingly fractured between sellers anchored to pandemic-era pricing expectations and buyers sidelined by economic uncertainty.
The delisting strategy reshapes supply dynamics
Asad Khan, senior economist at Redfin, described the shift as consequential. "That increase is bigger than it looks on paper; it represents a fairly significant jump in delistings from last year," Khan said.
"More sellers are giving up because their homes have been sitting on the market for a long time, and they don't want to or can't afford to settle on accepting a low price."
The delisting surge directly impacts pricing. Despite the total number of homes for sale rising 8% year-over-year in September, pending sales declined roughly 2%, a combination that would typically pressure prices downward. Yet prices climbed about 2% annually, defying conventional market dynamics.
"The frequency of delistings is keeping inventory tighter than it looks on paper," Khan said.
"When tens of thousands of homeowners pull their homes off the market rather than accept a low offer, it effectively reduces the supply of homes that are actually available for buyers."
Recent buyers drive delisting surge
Recent purchasers accounted for nearly half of all delistings. Forty-seven percent of homes delisted in September were bought within the preceding five years, compared to 37% of all active listings.
Khan attributed this to pandemic-era buyers' lingering price expectations. "Many homeowners who bought during the pandemic demand frenzy still expect sky-high prices," he said.
"They're hesitant to yield to buyers who want to negotiate the price down."
Consumer confidence falters as headwinds mount
That trend arrives with other signs showing Americans are increasingly pessimistic about the economic outlook.
The Conference Board's Consumer Confidence Index dropped to 88.7 in November, its lowest level since April, with job-related anxieties intensifying.
The share of workers describing jobs as "plentiful" plummeted to 6% from 28.6% in October. Such weakness threatens to further cool buyer demand, potentially intensifying delistings.
Redfin agent Aditi Jain characterized the sales environment bluntly: "Today's listings are getting one or two offers at best, compared to 10 a few years ago. They'd rather rent out their home than sell for a low price."
Market signals point toward sustained friction. Seventy percent of listings in September were "stale" (on market 60+ days), with delisted homes averaging 100 market days before removal.
Meanwhile, 15% of September delistings faced loss-on-sale risk, the highest share in five years.
These dynamics suggest sellers increasingly view holding as preferable to capitulating on price, even as economic uncertainty discourages buyers.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
