How rising delistings are impacting sellers

Elevated interest rates and rising home prices have taken a toll on buyers and sellers. And while the market has remained relatively balanced, favoring sellers slightly due to low inventory, could buyers soon have the upper hand?

In the first half of 2022, more than 70% of homes sold at or above list price - a clear indication of a seller's market. Now, we see a different picture emerging. Amidst the traditionally busy homebuying season, only about 55% of homes sold at or above list price in the first half of 2024. This decline often signals a market where buyers are gaining more negotiation power.

One of the most telling signs of the market shift is the dramatic increase in delistings, or homes that are removed from the market after they've been listed for sale. Typically, the rate of homes delisted spikes later in the year, coinciding with reduced market activity. However, 2024 has deviated from the norm.

A Record-Breaking Year for Delistings

Historically, the rate of delistings is the lowest in the summertime compared to the rest of the year. Yet so far this July, delistings have already surpassed levels seen in the past decade. For every 100 homes that either sold or delisted in July, more than 22% have been removed from the market without selling. This is in stark contrast to the average rate for July, which hovers around 14% - meaning delistings are almost 60% higher for this time of year than in previous years. And, based on past seasonality, this trend will likely only worsen as we enter the fall and winter months.

Delisting can happen for many reasons, but it typically signals a misalignment between buyers and sellers. Since the pandemic, home prices have skyrocketed. Last month, the median home price in America hit the steepest price ever recorded by the National Association of Realtors (NAR). So it's not surprising that sellers entering the market expect buyers to pay more than they are willing. We also recently uncovered that many sellers say they are emotionally attached to their homes - another factor that could impact how they view the value of their homes. This is why sellers need to understand the nuances of the market and price their homes accordingly. I always tell homeowners that the first two weeks on the market are critical - if you're not getting interest, something about the listing doesn't match buyers' expectations.

For those considering selling their homes, understanding these trends is crucial for making informed decisions - and for reducing the emotional strain that can come with listing and delisting a home. If sellers are armed with the right information and tools, they can move with less stress and more confidence.

That's where Opendoor comes in.

More Ways to Sell: List with Opendoor Expands

At any point in time - but especially right now - selling a home can be extremely stressful, time-consuming, and full of uncertainty. But, homeowners should know they have options outside of the traditional route. Selling directly to Opendoor, for example, only requires a few steps online to request a cash offer. With an all-cash offer from Opendoor, there are no unknowns when it comes to if, when, and for how much your home will sell.

Last year, we also launched List with Opendoor in certain markets for added certainty and peace of mind when listing on the market. Sellers who choose this option work with one of our local Opendoor partner agents to list their home on the MLS while having our cash offer locked in for 30 days - which is especially reassuring in a market where homes are delisting at a higher rate.

Since then, we've expanded the experience to reach homeowners in nearly all of Opendoor's 50 markets. If sellers aren't getting any offers, they can still complete the sale without starting over, feeling stuck, or delaying their next chapter. They can stop showings and accept our cash offer at any time. Our sellers are continuously choosing this option, and in June, we increased listing agreements by 60% compared to January.

Both of our selling experiences are supported by our digital tools, combining technology with the empathy of our people. Our operations teams are on the ground and know the worries, stressors, and emotional toll it can take to sell your home. We are here to provide support every step of the way.

The bottom line for sellers: with Opendoor, there will always be a path forward for homeowners to move with certainty and confidence. Sell your way with Opendoor today.

Amit Arora is the Vice President of Investments at Opendoor.

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