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Sellers Retreat As Weak Demand And Price Cuts Shake Housing Market

Photo by Dillon Kydd / Unsplash

Home sellers in the U.S are pulling their listings at the fastest pace in nearly a decade as weak demand, falling prices, and economic uncertainty push more homeowners to wait out the market.

Nearly 85,000 sellers delisted their homes in September, a 28% jump from last year and the highest level for the month since 2016, according to Redfin.

Stale listings are driving the trend. Redfin found that 70% of homes sat on the market for over 60 days, prompting owners to avoid accepting lower offers. Home prices rose just 1.3% year over year in September, down from 1.4% in August, per the S&P CoreLogic Case-Shiller Index.

Some sellers are slashing prices, with Zillow reporting cumulative cuts hitting a record $25,000 in October.

Still, many are waiting for spring. About 15% of September delistings were at risk of selling at a loss, the highest in five years, despite home prices remaining 50% above 2019 levels.

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