U.S. housing market sees rise in withdrawn listings

According to data from brokerage firm Redfin, 5.8% of all homes listed for sale in the United States were withdrawn from the market in April. This marks the highest share since March 2020, when the outbreak of the COVID-19 pandemic effectively brought the housing market to a standstill. On a monthly basis, withdrawals increased by 3.8% compared with March.

The trend is mainly attributed to slowing demand, as high mortgage interest rates, elevated fuel costs, and weakening consumer confidence are dampening buyer appetite. As a result, sellers no longer hold the same negotiating leverage as in previous years and are often unable to achieve their desired asking prices.

The highest withdrawal rate was recorded in Atlanta, where one in ten homes was taken off the market in April. It was followed by San Jose, California, at approximately 9%, Los Angeles at 7.8%, Dallas at 7.8%, and Seattle at 7.7%.

Market conditions have deteriorated following the rise in mortgage rates. Although 30-year fixed mortgage rates briefly fell to around 5% earlier in the year, they subsequently increased significantly and remain elevated, limiting housing affordability for many buyers.

While home prices have shown signs of cooling in several regions, they remain above year-ago levels. In some markets, there are even indications of stabilisation and, in certain cases, renewed price growth.

At the same time, pending home sales—contracts that have been signed but not yet completed—rose marginally by 1.4% in April compared with March, according to the National Association of Realtors. This improvement is largely linked to increased housing supply, with overall inventory rising by nearly 6% on a monthly basis.

However, in many parts of the country, homes are remaining on the market for longer periods as new listings continue to come in while buyers become more selective. This dynamic is placing additional pressure on sellers, prompting some to temporarily withdraw their properties.

Recent developments suggest that the U.S. housing market is moving into a more balanced phase, with buyers gaining stronger negotiating power and sellers increasingly required to adjust expectations in a higher-cost financing environment.