Real Estate

More delistings show buyers have reached their limit on price.

This article was shared here with permission from Mike Del Prete of Inman Intel, Inman’s data and research arm that offers deep insights and market intelligence on the residential real estate and proptech businesses. Subscribe today.

The number of homes listed for sale and then delisted—taken off the market without selling—is hitting an all-time high.

Take the InMen Intel Index survey for May.

Why it matters: An increase in delistings is a sign of price imbalance, with buyers asking prices higher than they are willing to pay.

  • National listings, as a percentage of total listings, are nearly double the normal rate, bucking seasonal trends, and accelerating rapidly.

It all starts with pricing. — and new listings coming on the market cost a lot more.

  • Average price per square foot on new listings is at a record high.

Another price tag The disequilibrium is falling prices, which are also rising.

  • The percentage of active listings with price reductions has been high for years, and growing.

And for houses That are Selling, it’s taking more time.

  • The average number of days on the market is gradually increasing and higher than previous years.

The bottom line: The cost of adding new listings to the market is high, causing the number of delistings to increase rapidly and prices to drop.

  • This is the beginning of a price correction. Sellers are bringing more inventory to market, but with an “asking price” that buyers aren’t willing to pay.
  • A record number of pricing corrective measures will likely lead to overall correction – lower prices – as supply and demand remain in balance.

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