Why Homeowners Are Delisting Instead of Lowering Their Prices

There’s an interesting trend in real estate right now where homeowners are delisting their properties before they sell. Delisting rates have reached a decade-long high of 5.5%, which translates to tens of thousands of houses across the United States. Delistings are increasing faster than overall listings are increasing. According to a recent report by Realtor.com, a growing number of homeowners are pulling their listings—nearly 85,000 U.S. sellers took their homes off the market in September, a 28% increase from the same month a year earlier, and the highest share for that month in eight years. While it’s natural for some homeowners to delist their homes each year, this trend is getting noticed by buyers, other sellers, and real estate experts in several markets.

This guide will dive into the delisting trend and what it means for the market. In 2025, year-to-date delistings are up roughly 45% compared to previous periods. Learn why homeowners are delisting instead of lowering prices, and what can be done from both a buyer and seller’s perspective.

There are always options in real estate. Here’s what’s driving the delisting trend and what can be done about it.

What Does It Mean When a Home Is Delisted?

A home is delisted when it is removed from the housing market before it sells. The homeowner did not find a buyer and no longer wants their property to be viewed by potential buyers. A temporary delisting occurs when homeowners pull their properties from the market for a short period of time. They might remove their listings for the holiday season and relist in the new year, or delist to make a major repair (like replacing the roof after a major storm). A permanent delisting occurs when a homeowner has no intention of entering the market again in the future.

A delisting is not an expired listing. With an expired listing, the contract between the seller and listing agent has ended, and the house is removed from the multiple listing service (MLS). It may be relisted with a different agent soon. Delisting is intentional and could occur within a few days, weeks, or months of a property entering the market.

Sellers who delist aren’t necessarily giving up on selling. It doesn’t mean there is something wrong with the home or that it is overpriced. Plenty of sellers have valid reasons for changing their minds about moving, and delisting is a natural part of the real estate market.

However, when delisting becomes more common, as senior economists are seeing now, it becomes a trend worth exploring. There may be a reason why so many listings are getting pulled in the current housing market. More homes are being pulled from the market than in previous years, and more homeowners are choosing to delist their properties. In fact, roughly one in five homes that are delisted are re-listed within three months.

Why Homeowners Choose to Delist Instead of Lower Prices

Every homeowner has unique life and financial situations, which drive some people to delist when they need to. There are several reasons why sellers pull homes from the market, potentially waiting to relist them later. Here are a few common causes.

• Emotional attachment affects perceived home value. Many homeowners believe their home is priceless because of the memories they made there. Some may be unwilling to lower the sticker price because of this perceived value.
• They don’t want to leave money on the table. A lower price means the seller profits less from the sale. Some homeowners might see comparable home sales and feel like lowering the price would cause them to leave money behind.
• Unrealistic market expectations. Today’s market is different from last year’s, and will be different from next year’s. Some people reference home prices from previous markets instead of considering current comparables. Many sellers are unwilling to accept a low offer and would rather delist than negotiate downward.
• Price reductions feel like a loss. Some sellers feel like failures if they have to lower their listing prices, or they worry that would-be buyers will low-ball them with bad offers. They prefer to delist and potentially delist at a different price.

Many sellers are pulling their homes off the market because they do not want to or cannot afford to settle for low prices, and this unwillingness to negotiate on price is leading to more delistings.

Delistings also affect buyer activity. There are fewer home listings to explore, and sellers tend to be less willing to negotiate deals. Instead of both parties reaching a fair sale agreement, sellers walk away from the deal and delist their homes. Many homeowners are choosing to delist their properties rather than lower their asking price as they wait for more favorable offers.

The Role of Mortgage Rates and the “Golden Handcuffs” Effect

One of the current reasons for the rise in delisted homes is the “golden handcuffs” effect of changing interest rates. Around the COVID-19 pandemic and into 2021, interest rates hovered around 3%. Many homeowners secured a low rate or relatively lower interest rate during this period, making them less willing to sell unless they can get a high price. For the past few years, interest rates have fluctuated between 6% and 7%. This means that sellers who move from one house to the next would take on much larger monthly payments even if they had the same-sized loan.

The term “golden handcuffs” refers to sellers who have such a great interest rate that they would prefer to stay in their current homes rather than move to better ones. Sellers with low mortgage rates from the pandemic era are less urgent to sell and prefer not to trade for higher rates on a new home.

To get an idea of how interest rates can affect monthly payments, consider this example:

• A $400,000 house is purchased with a 20% down payment of $80,000.
• The buyer takes out a $320,000 fixed-rate home loan with an interest rate of 3%.
• The expected monthly payment is $1,349 before factoring in taxes and insurance.
• If the buyer takes out the same home loan at 6%, their monthly payment jumps to $1,919.

A $600 monthly payment increase is enough to deter some sellers from moving, especially when they consider the total cost of the loan. The buyer taking out a $320,000 home loan at 3% will pay a total of $165,688 in interest over 30 years. The buyer taking out the same loan size at 6% will pay $370,682 in interest alone over 30 years. The loan costs $200,000 more due to higher rates.

Many homeowners are reluctant to sell due to their favorable mortgage rates, which makes them hesitant to accept lower offers.

While buyers can refinance at lower interest rates if the market shifts, some homeowners aren’t moving once they realize how their monthly payments are expected the change.

The Financial Math Behind Not Lowering the Price

Some sellers are also unable or unwilling to lower their asking prices once they list their homes. Homeowners who purchased their homes in the last five years, especially during the last few years of the pandemic demand frenzy, are at greater risk of being unable to sell at an affordable price and are more likely to delist. Some worry about losing money on the sale and potentially falling into debt.

During the COVID-19 pandemic, home sale prices rose significantly. In early 2020, the median sale price was $317,100. This jumped to $442,600 by the end of 2022. Many buyers paid higher prices during this period of elevated market value, leading many to wonder how much a home sold for. Many homeowners who bought during the pandemic still expect sky-high prices and are hesitant to yield to buyers who want to negotiate.

Not every seller can afford to lower their asking price, but that also means the house is unlikely to sell. This is why some homeowners are staying in their homes until the market shifts or are looking into alternative options like renting the property to create passive income.

Market Conditions Can Shift Faster Than Seller Expectations

While an unfavorable economy can keep homeowners from listing their properties, shifting market conditions in today’s market can lead to an uptick in delistings. In today’s market, with rising interest rates and economic uncertainty, sellers may choose to delist rather than lower prices. For example, if median home prices change before sellers can respond to them, homeowners might decide to delist their properties instead of negotiating lower asking prices.

Market conditions can change for a variety of reasons. Macroeconomic trends, seasonal shifts (like the Christmas holidays and cool winter months), and even local events can affect new listings and lower average prices. The frequency of delistings is keeping inventory tighter than it appears, which helps maintain elevated sale prices. This is why experienced real estate agents pull comparable sales from the last 30 days. This method of identifying the target price isn’t perfect, but it can provide up-to-date data on the market.

It’s not uncommon for there to be a lag between market reality and seller expectations, keeping sale prices elevated until the region catches up. As the market rose in previous years, sellers’ expectations have not caught up with today’s market reality, impacting supply and inventory. Delistings effectively reduce the supply of homes available for sale, which can keep sale prices elevated even when demand is lower. It’s up to home sellers to be realistic about how many homes are on the market and what they are selling for. It’s the role of real estate agents to inform their clients about market changes and what it means for asking prices.

Emotional Factors Home Sellers Don’t Talk About

There are definitely emotional elements to the home sale. Homeowners aren’t just parting with financial assets, they are leaving properties that are full of important memories and events. There are also emotional factors at play when sellers reduce their prices. Some people feel like they are “losing” the deal through price reductions and lower negotiations. In some cases, this fear of leaving money on the table can be so severe that multiple buyers walk away from the sale.

Delisting makes sellers feel like they are taking back control of their homes and gives them the advantage of stepping back from the market on their own terms. They no longer have to deal with the stress of showings or the frustration of dealing with potential buyers. Many sellers take advantage of seasonal trends, choosing to delist in the fall or winter—when delistings typically peak—and then relist in the spring, when market activity and buyer interest often increase. When moving becomes overwhelming, a seller delists.

An experienced real estate agent can help sellers through these stressful periods, balancing price negotiations with getting enough from the deal. However, there are always going to be times when the homeowner needs a break from the sale process and can relist again in the future. If you’re wondering what it means to sign a contract with them, it’s helpful to understand what obligations—if any—are involved.

What Delisting Means for Buyers and the Market

An increase in delistings can also affect buyers searching for new listings and high-potential inventory. Delistings decrease the number of available properties that buyers can tour. This can create a more competitive seller’s market. An increase in delistings can also be frustrating for buyers, because sellers would rather pull their homes from the market than negotiate competitive deals. Additionally, some homeowners are choosing to rent out their properties instead of selling them at lower prices, which further reduces the number of affordable options for buyers.

However, if the delistings are temporary, they will return to the market later – ideally at reasonable prices based on current trends. Buyers need to be patient in the search and stick to their desired budgets. In some markets, inventory may remain low because of the “golden handcuffs.” In other areas, buyers might get better deals from sellers who are eager to move.

When Delisting from the Housing Market Makes Strategic Sense

Delisting isn’t necessarily a bad idea for sellers or a warning for buyers. There are plenty of reasons why a seller might pull their home from the market, either for a few months or a few years. As of September 2025, approximately 70% of U.S. home listings were considered stale, with 70% of homes listed in September remaining unsold for at least 60 days, leading many sellers to delist to reset the days on market counter.

• They have a flexible timeline. If there is no urgency to sell, a homeowner can wait for favorable market conditions.
• They are in a strong financial position. Many homeowners are happy where they live and enjoy their low mortgage rates.
• They believe the market will improve. Faith in a favorable market can make sellers more patient.
• They want to make essential improvements or repairs. The property might sell faster or for more with a few key upgrades.
• They have unrealistic market expectations. Some sellers keep their sticker price higher than buyers are willing to pay, choosing to delist rather than lower their price.

Families might also delist if they are trying to sell around the school year. They would rather let their kids start the semester fresh instead of changing districts mid-year.

When Lowering the Asking Price May Be the Better Move

Delisting isn’t always possible, and many sellers are eager to move, either to change where they live or to keep up with job offers and life changes. Here are a few examples of when it is better to stay in the market and lower the home price. 

• There are time-sensitive needs. Some sellers need to relocate for job opportunities or to be closer to family ahead of a birth.
• There is limited buyer appeal at the current price. If buyer demand is high and your house doesn’t have much interest, it could be overpriced.
• Competition is increasing. If more sellers are entering the market at favorable rates, you may need to adjust your price to stay relevant.
• You can’t afford to wait. Changes to your financial situation may cause you to sell now. Not everyone can stay in their homes for a few more years.

Sellers want to list when there are high home prices and an exceptional amount of buyer demand, but that’s not always possible. You may need to enter the current market and set a fair price to attract potential buyers to your home.

Delisting in Real Estate Isn’t Defeat, It’s a Decision

Just because there are more delistings doesn’t mean sellers need to panic or buyers need to worry. Delisting is an individual decision, and both parties can still negotiate competitive deals. An experienced Realtor can help sellers choose fair prices while helping buyers make favorable offers. All parties can work together to reach an agreement they are happy with.

FastExpert is the first place to start, whether you are entering the market as a buyer or seller. Find a trusted real estate professional who can help you decide whether delisting, repricing, or waiting is the smartest move for your goals. Try FastExpert today and feel confident in the decisions you make. There are always options, and a trusted agent can stand by your side the whole way.