By Frank Johnson, North Louisiana Business Journal

Nearly 85,000 American homeowners removed their properties from the market in September rather than accept what they considered inadequate offers, marking a 28% increase from the previous year and the highest September total in eight years, according to recent data from real estate analytics firm Redfin.

The trend, which has accelerated throughout 2025, reflects a fundamental standoff between sellers clinging to pandemic-era price expectations and buyers increasingly resistant to historically elevated home prices and mortgage rates hovering around 6%.

The Delisting Surge

The numbers tell a striking story. Nationwide, roughly one in 18 listings was pulled from the market in September without selling, representing 5.5% of total listings—the highest September rate in a decade. This pattern has intensified throughout the year, with year-over-year growth in delistings peaking at 39% in June 2025, according to Redfin’s analysis.

For perspective, delistings jumped 52% in September compared to the previous year, with growth rates reaching nearly 72% in August, according to separate data from Realtor.com. By May, 13 homes were being delisted for every 100 new listings hitting the market, up from 10 homes delisted during the same period in 2024 and 2023, and just six property delistings in 2022.

“The frequency of delistings is keeping inventory tighter than it looks on paper,” said Asad Khan, a senior economist at Redfin. “When tens of thousands of homeowners pull their homes off the market rather than accept a low offer, it effectively reduces the supply of homes that are actually available for buyers. That keeps sale prices elevated.”

Why Sellers Are Walking Away

The primary driver behind this unprecedented wave of delistings is a fundamental pricing mismatch. Sellers who bought homes during the pandemic frenzy between 2020 and 2022 remember a seller’s market where properties received multiple competing offers and sold at or above asking price within days. Many remain anchored to those peak-era price expectations even as market conditions have shifted dramatically.

Nearly half of September’s delistings—47%—came from owners who purchased within the last five years, suggesting these recent buyers are particularly resistant to accepting current market realities.

But unlike previous housing downturns, today’s sellers have a crucial advantage: equity. Home prices nationally are still 50% higher than they were five years ago, giving most homeowners substantial cushions of built-up equity.

“Unlike past housing cycles where falling prices pressured underwater homeowners to sell, today’s homeowners benefit from record-high levels of home equity, so they have the flexibility to wait it out,” explained Jake Krimmel, senior economist at Realtor.com. “This allows many sellers to withdraw their homes from the market if their asking price isn’t met.”

The so-called “lock-in effect” adds another layer of complexity. Many sellers who bought between 2020 and 2022 secured mortgage rates below 4%, with some obtaining rates in the 2% to 3% range during the historic lows of 2021. The prospect of selling their current home only to finance a new purchase at today’s rates around 6% makes moving financially unappealing even if they find a buyer.

“Some prospective sellers are opting not to list at all, and others are taking their home off the market if it’s not getting the price they want,” said Aditi Jain, a Redfin Premier agent in Boston. “Sellers aren’t motivated because, frankly, it’s no longer a great time to sell; today’s listings are getting one or two offers at best, compared to 10 a few years ago.”

Stale Listings and Market Fatigue

Properties are languishing on the market for unprecedented durations. Redfin reported that 70% of listings in September were on the market for 60 days or longer. The typical delisted home had sat unsold for 100 days before being withdrawn.

These extended marketing periods reflect buyer hesitancy. While the supply of homes for sale is approximately 15% higher than a year ago, pending home sales were down roughly 2% in October, according to the National Association of Realtors. The combination would typically drive prices down, but the surge in delistings is preventing that natural market correction.

Price reductions are becoming increasingly common as sellers test the waters. Some properties are seeing multiple price cuts—the typical listing saw cumulative price reductions of $25,000 in October, matching the largest discounts data firm Zillow has ever recorded. Yet even these adjustments aren’t always enough to close deals, leading frustrated sellers to simply remove their listings.

Regional Variations

The delisting phenomenon is most pronounced in the South and West, particularly in markets that saw explosive growth during the pandemic. Miami leads the nation with 59 homes delisted for every 100 new listings in June—more than double the national average. The South Florida metropolitan area has consistently posted the highest delisting ratios among major metros.

Phoenix ranked second nationally in delistings during spring 2025, with 37 delistings per 100 new listings, followed by Riverside, California with 30. Austin, Texas, and Denver also saw high shares of price reductions and subsequent delistings.

Florida markets dominate the trend. In the Miami metropolitan area, 85% of listings were stale (sitting for at least 60 days) by summer 2025. Fort Lauderdale matched that rate at 85%, while Austin hit 83%. San Antonio and other Texas markets also reported exceptionally high shares of stale listings.

“Some South Florida homeowners’ choice to delist points to sellers anchored to peak-era price expectations and willing to wait rather than negotiate,” noted Danielle Hale, chief economist at Realtor.com.

By contrast, markets in the Northeast and Midwest remain relatively tight, with fewer delistings and more stable pricing.

The Risk Factor

Approximately 15% of homes delisted in September were at risk of selling at a loss—the highest share in five years, according to Redfin. This suggests that not all sellers are in strong financial positions, despite the overall equity cushion most homeowners enjoy.

South Florida’s median listing prices showed some of the largest declines among major metropolitan areas studied, falling from $535,000 in July 2024 to $509,950 in July 2025. Yet even with these price adjustments, sellers in the region continued pulling listings at record rates.

Market Implications

The delisting surge creates a paradox. While total inventory has increased—active listings topped 1.1 million nationally by mid-2025—the effective supply of homes genuinely available for purchase remains constrained as tens of thousands of properties cycle on and off the market.

This pattern is propping up home prices despite weak buyer demand. The median home price nationally reached the steepest level ever recorded by the National Association of Realtors earlier this year, with prices continuing to rise approximately 2% year-over-year even as sales volume declined.

“This year’s market is a study in contrasts,” Hale said. “Buyers are seeing more choices than they’ve had in years, but many sellers, anchored by peak price expectations and upheld by strong equity positions, are deciding to step back if they don’t get their number.”

According to Redfin data, roughly one in five homes delisted over the summer were re-listed within three months, with many sellers likely waiting for the spring 2026 selling season to try again.

What It Means for Louisiana

While national delisting trends have focused heavily on Sun Belt markets like Miami, Phoenix, and Austin, Louisiana’s housing market presents a more moderate picture with its own unique dynamics.

Louisiana home prices rose 6% year-over-year in October 2025, reaching a median of $256,200, according to Redfin data. That growth rate outpaces the national average of approximately 2%, suggesting Louisiana’s market remains relatively healthy compared to overheated markets now experiencing corrections.

However, the state isn’t immune to broader market pressures. Home sales in Louisiana declined slightly in 2024, dropping 2.6% to 38,450 transactions, according to the Louisiana Realtors Association. The number of homes for sale statewide fell 3.4% year-over-year to 17,004 properties in October 2025, indicating tighter inventory than the national trend of rising supply.

Louisiana sellers appear less inclined to delist than their counterparts in major metros experiencing dramatic slowdowns. The state’s median days on market stood at 62 days in October—substantially lower than the national figure of 100 days for delisted homes. Price reductions affected 28.1% of Louisiana listings, up from 23% the previous year but still below many overheated markets.

“Louisiana’s housing market is showing resilience partly because we never experienced the same pandemic-era price explosion as places like Austin or Miami,” said Alí Bustamante, an economist with the University of New Orleans who leads its Institute for Economic Development & Real Estate Research. The state’s more affordable baseline—with median prices roughly $100,000 below the national median—has created less dramatic corrections.

Regional variations exist within Louisiana. The Greater Baton Rouge area anticipates 10% to 15% increases in home sales in 2025, driven by lower interest rates and increased inventory, according to market forecasts. New Orleans faces a modest potential decline, with Zillow projecting a 4% decrease by September 2026 as the market recalibrates after recent growth. Lake Charles is projected to see a 2.9% decline in home prices due to increased housing supply, new construction, and rising insurance costs related to natural disasters.

Affordability remains the chief concern for Louisiana’s housing market. Record-high property insurance premiums—a particularly acute problem in Louisiana due to hurricane exposure—combine with mortgage rates around 6% to hamper buying power. The state’s 4.8% unemployment rate provides economic stability, but construction costs and insurance continue to pressure both buyers and sellers.

Louisiana sellers benefit from substantial equity cushions, similar to national trends. However, the state’s lower price points mean homeowners haven’t accumulated the same massive equity gains seen in coastal markets, potentially making them more willing to negotiate rather than delist when offers come in below asking prices.

For Louisiana buyers, the relatively modest delisting activity compared to national hotspots suggests more genuine inventory remains available. The state’s position as a buyer’s market—with homes spending an average of 74 days on market as of January 2025—means negotiating room exists for those who can navigate the affordability challenges posed by insurance and interest costs.

The Outlook

The National Association of Realtors forecasts a potential turnaround in 2026, with chief economist Lawrence Yun predicting existing-home sales will jump 14% after three years of stagnation. New-home sales are projected to rise 5%, with home prices expected to tick up 4%.

“Next year is really the year that we will see a measurable increase in sales,” Yun said at a Nov. 14 conference. “Home prices nationwide are in no danger of declining.”

However, this optimistic projection depends on several factors aligning, including mortgage rates declining and buyer confidence improving. Current mortgage rates around 6% remain elevated by historical standards relative to the pandemic era, though they’re below the long-term average of approximately 7.8% dating back to 1971.

For now, the housing market remains gridlocked. Buyers have gained negotiating power as inventory has grown, but sellers retain what analysts call a “trump card”—the ability to simply walk away and wait for market conditions to improve rather than accept prices they view as inadequate.

“Delisting may help the market, because there is no sense for buyers to look at overpriced homes where the seller isn’t truly interested in negotiating,” said Mike Pappas, CEO of The Keyes Company, a South Florida real estate firm. Yet this pattern of withdrawal is extending the market adjustment period, leaving both buyers and sellers in an uncomfortable holding pattern as 2025 draws to a close.

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