Late fall is when most homes come off the market, because unsuccessful sellers at such a distance don’t sit through the slow winter months. In October, however, reported with a one-month gap, up 45.5 percent year-to-date and up nearly 38 percent from October 2024, according to a new report from Realtor.com.
The report calls that an “unusually high rate,” as it’s now the highest listing year since Realtor.com began tracking in 2022. Listings began to rise in June and have remained high for five straight months. About 6% of active listings each month are coming off the market, which usually only shows up in the dead of winter.
In addition, more potential buyers refer to Realtor.com as “Shelter Markets.” These are areas where home prices are much more affordable and don’t see a run-up in prices in the first years of the pandemic.
“Increasing listings and sheltered growth define and bridge today’s housing market,” said Daniel Hale, chief economist at Realtor.com, in a release. “These dynamics reflect how years of high rates and price increases have rewritten the rules of engagement for both buyers and sellers.”
Hale predicts a gradual improvement next year, likely with mortgage rates and a more stable supply creating a more balanced market between buyers and sellers.
Some of the cities that have seen the highest price increases in the past five years are now seeing the biggest share of frustrated sellers. Miami, Denver and Houston saw the highest ratio of homes listing compared to new listings.
According to Realtor.com, the average list price was 0.4 percent lower in November than in November 2024. However, this was still 36% higher than in November 2019. New listings were up just 1.7 percent from a year ago.
Price increases are stronger in havens like Grand Rapids, Michigan, where they’re up 5.5% year-over-year, and St. Louis, where they’re up 5%. Cleveland, Milwaukee and Pittsburgh rounded out the top performing shelters, according to the report. Prices in these markets are still 20%-30% below the national median.
Another troubling trend this fall – canceled contracts. About 15 percent of home purchase contracts were canceled in October, up from 14 percent a year earlier, according to Redfin. Cancellations are now above pre-pandemic levels.
Regionally, San Antonio saw the most canceled deals, with 1 in 5 (21%) home sales delayed in October. It was followed by Fort Lauderdale, Florida (20%), Fort Worth, Texas (19.7%), Las Vegas (19.2%) and Jacksonville, Florida (19.2%).
The report cited high housing costs as well as economic uncertainty.
