Homeowners taking houses off market as buyers refuse higher prices

(NewsNation) — Home sellers have been increasingly yanking their homes off the market instead of agreeing to lower prices as would-be buyers push back on higher prices.

After five years of a hot housing market, demand has cooled down because buyers can't bear higher prices amid persistent high interest rates, and they're fed up with the asking prices.

Sellers, as a result, don't want to take these lower profits, so they are choosing to pull their houses off the market. On average nationwide, 47% of homes have been delisted by their sellers, annoyed with the negotiation process, in May compared to last year, according to Realtor.com.

The delisting surge "is partly due to the overall expansion in active inventory."

"Many sellers, anchored by peak price expectations and upheld by strong equity positions, are deciding to step back if they don’t get their number," said Danielle Hale, chief economist of Realtor.com.

Despite this, home inventory hit a new post-pandemic high. And sellers aren't in as much of a rush to accept lower than their desired amount.

"Unlike past housing cycles where falling prices pressured underwater homeowners to sell, today's homeowners benefit from record-high levels of home equity, so they have the flexibility to wait it out," said Realtor.com senior economist Jake Krimmel. "This allows many sellers to withdraw their homes from the market if their asking price isn't met."