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More home are being pulled off the market as buyers haven't been showing up.
In fact, home sales in 2024 were at their lowest level in nearly 30 years. This increase in delisted properties could be a sign of a dysfunctional or weakening housing market in 2025.
According to data from real-estate analytics firm CoreLogic, nearly 73,000 homes were pulled from sale this past December, a 64% increase compared to December of 2023.
Texas-based real estate expert Cliff Freeman said it's a cat and mouse game with interest rates.
"Buyers are not going to get active at these levels like they were in the past," he explained.
The same can be said for sellers. According to Freeman, 75% of homeowners are looking at a mortgage at 5% or less. 56% of people are under 4%.
"The motivation right now to give up a great rate and go out and find a house and pay 7% for a mortgage is still holding sellers back," Freeman said.
The rise in delistings could lead to a change in U.S. home prices. Many investors anticipate a decline in home values. The best time to try and sell your house is when the weatehr starts to get warmer and there's a change in the season.
"The real litmus test will be March because that's when the Spring season is really in full force," said Freeman. "The best day to sell a house, if you could pick a time in the year, is around the middle or end of April."
Seasonally, that's when home prices are at their best. Delistings tend to rise during the winter time as fewer people are actively looking for a home.
The next month or two will show a lot about what the housing market is going to look like this year. Freeman expects to see a rise in buyers in many parts of the country as there's the potential for tens of thousands of federal workers to be out of a job. The Texas federal employment number is high and so the market in the state could be affected, but the economy has been a difference maker.
"Our economy here has been stellar over the last few years," Freeman said.
Like many in the industry, Freeman is keeping an eye on the Fed and how rates change throughout the year.