Home delistings reached a nine-year high in December after the market was inundated with sellers but not enough buyers

A surge in housing supply has led to a sharp rise in homeowners pulling their listings off the market, as there aren’t enough buyers to match the growing number of sellers.

In December, the number of delisted homes soared 64% from the previous year to 73,000, the highest level since 2015, according to CoreLogic data cited by The Wall Street Journal.

While delistings usually rise in the winter months, the scale of this increase points to an unusually large gap between supply and demand.

On the supply side, the number of homes on the market reached 1.15 million in December, a 16% jump from the previous year, according to the National Association of Realtors.

At the same time, demand has remained weak. Home sales in 2024 fell to their lowest level in nearly three decades as mortgage rates stayed high, making it harder for buyers to afford homes.

Even lower-priced new homes, which builders have been constructing at smaller sizes to attract buyers, have struggled to sell. The number of completed but unsold homes rose 46% in December to 118,000, according to the National Association of Home Builders.

With supply outpacing demand, many sellers are choosing to delist rather than accept lower offers, hoping market conditions will improve.

Spring typically brings an increase in homebuying activity, so some sellers may relist their properties in the coming months.