Housing Market Shifts as Delistings Surge and Buyers Seek Affordable ‘Refuge’
A growing number of homes are being pulled off the market, and potential buyers are increasingly turning to more affordable areas, signaling a significant shift in the dynamics of the U.S. housing landscape. New data reveals a challenging environment for sellers facing higher interest rates and a slowdown in demand.
Delisting Rates Reach Unprecedented Levels
The number of homes removed from listings—known as delistings—has risen sharply this fall. According to a recent report from Realtor.com, delistings were up 45.5% year-to-date in October and nearly 38% compared to October 2024. This represents an “unusually high rate” and the highest delisting year since Realtor.com began tracking the data in 2022. The trend began in June and has persisted for five consecutive months, with approximately 6% of active listings being withdrawn each month—a rate typically observed only during the winter slowdown.
“Rising delistings and the growth of refuge markets capture the push and pull defining today’s housing market,” stated a leading economist at Realtor.com. “These dynamics reflect how higher rates and years of rapid price growth have rewritten the rules of engagement for both buyers and sellers.”
The Rise of ‘Refuge Markets’
As affordability diminishes in many previously hot markets, prospective homebuyers are seeking alternatives. These “refuge markets” are characterized by more moderate home prices that did not experience the dramatic increases seen in other areas during the early years of the pandemic. Cities like Grand Rapids, Michigan, and St. Louis, Missouri, are experiencing stronger price gains—up 5.5% and 5% year-over-year, respectively—while remaining significantly more affordable than the national median. Cleveland, Milwaukee, and Pittsburgh also rank among the top-performing refuge markets, with prices still 20%-30% below the national average.
Frustration Mounts for Sellers in Formerly Booming Cities
Some of the cities that witnessed the most substantial price appreciation over the past five years are now seeing the highest proportion of frustrated sellers. Miami, Denver, and Houston have the highest ratio of homes delisted compared to those newly listed, indicating a growing struggle to find buyers.
Nationally, the median list price in November was 0.4% lower than in November 2024, though it remains 36% higher than pre-pandemic levels in November 2019. New listings are only up 1.7% from a year ago, contributing to the limited inventory.
Canceled Contracts Signal Further Weakness
Adding to the challenges, the number of canceled home purchase agreements is also on the rise. Approximately 15% of contracts were canceled in October, up from 14% the previous year, according to Redfin. This figure is significantly higher than pre-pandemic levels.
Regionally, San Antonio, Texas, experienced the highest cancellation rate, with over 21% of pending sales falling through in October. Fort Lauderdale, Florida (20%), Fort Worth, Texas (19.7%), Las Vegas, Nevada (19.2%), and Jacksonville, Florida (19.2%) also reported high cancellation rates. High housing costs and economic uncertainty were cited as primary factors.
Despite these headwinds, the economist at Realtor.com forecasts a gradual improvement in the coming year, anticipating potentially lower mortgage rates and a more consistent supply of homes, which could lead to a more balanced market between buyers and sellers.
