Record Delistings and Lower Rates Create a Mixed Market for Homebuyers and Sellers

The holiday season can bring a lull in open houses, but with mortgage rates hovering close to 6%, some homebuyers and sellers aren't ready to slow down.

"Any improvement in mortgage rates has the potential to draw more buyers into the market, regardless of the season," says Hannah Jones, senior economic research analyst at Realtor.com®. "This year stands out from the last several, as buyers are benefiting from both lower rates and a more abundant supply of homes for sale."

Home prices have edged down, fewer newly listed homes have hit the market, and for-sale inventory is building, according to the Realtor.com Weekly Housing Trends report.

Buyers considering making a move have mortgage interest rates to consider. Rates ticked up slightly to 6.22% for the week ending Dec. 11. That's up from 6.19% the prior week. Still, rates are much lower than the same time a year ago, when they averaged 6.6%.

Despite rates trending downward, market conditions are still a challenge. Many homeowners feel locked-in to their mortgages, although it's the least pronounced in the Midwestern markets.

"The Midwest continues to experience the least severe lock-in effect, thanks to lower home prices, more modest price growth over the past five years, and a larger share of homeowners whose mortgage rates are closer to today’s levels," says Jones.

"In contrast, many homeowners in high-priced coastal metros refinanced into ultralow rates during the [COVID-19] pandemic, intensifying the lock-in effect, especially as prices in some of these markets remain high or are still rising," says Jones.

The latest housing market data shows that conditions continued to improve for buyers in November, with climbing inventory, softening prices, and extended time on the market.

But many sellers are choosing to delist their properties. Delistings in October rose 45.5% year to date and 37.9% year over year. This makes 2025 the year with the highest national delisting rate since Realtor.com began tracking the metric in 2022, according to the report.

"With inventory up and homes taking longer to sell, some homeowners may opt to withdraw their listings and try again next year rather than reduce their asking price too significantly," Jones explains.

"As noted, sellers who also plan to buy within the same area are often facing higher monthly housing costs, which can limit monthly housing costs, which can limit how far they are willing to lower prices."

Housing highlights

Active home inventory climbed 12.6% year over year. The inventory growth continues to be driven more by homes lingering on the market than by new listings. There were over 1 million homes for sale last week—the 32nd consecutive week above the million-mark.

New listings fell by 7.4% year over year. This is a measure of sellers putting homes up for sale. But homes are staying longer on the market—four days longer than a year ago. The report reveals that November usually sees longer selling times, but "this year’s trend is more shallow, with time on the market rising less sharply." This is likely reflecting sellers adjusting prices to align with buyer expectations, or long-sitting homes being delisted.

In November, the national median list price was $415,000. This week's report shows that the median list price dropped compared to the same week one year ago. Adjusting for home size, the price per square foot also fell 1.1% year over year. This is the 14th consecutive week where home-size prices dropped.