Why Homes Are Being Pulled Off the Market

By Brian Kelleher

I distinguish myself within the real estate industry by offering personal service of exceptional quality. My goal is to provide my clients the finest service, counsel and guidance. My greatest asset, and the key to my success, is YOU.

Have you noticed homes disappearing from the market without ever seeing a SOLD sign? You’re not alone. Something unusual is happening in today’s housing market, and understanding it can help you make better buying or selling decisions.

First, let’s talk about the “lock-in effect” and life events. For years, many homeowners chose not to sell because they had secured historically low mortgage rates of around 3%. This caused many people to stay put longer than planned, a phenomenon called the lock-in effect.

Now, life changes such as new jobs, expanding families, or financial shifts are prompting homeowners to move, even if it means accepting a lower selling price or dealing with higher mortgage rates. Recent surveys show that 78% of sellers are motivated by life events rather than current market conditions. This means sellers are becoming more flexible on price, creating opportunities for buyers.

Next, there’s more inventory but fewer buyers. Mortgage rates are now around 7%, making homeownership less affordable for many first-time buyers. As a result, more homes are available, but fewer buyers are actively looking. In January, about 23% of listed homes saw price reductions, which is unusually high for this time of year. If you’re a seller, this means pricing competitively or offering incentives can make your home stand out. If you’re a buyer, it provides you with more options and negotiating power.

Lastly, there’s a hidden wave of inventory on the horizon. Many sellers who previously pulled their homes from the market plan to relist in the upcoming spring, anticipating higher demand. However, this sudden influx could lead to increased competition among sellers and potentially put downward pressure on home prices if demand doesn’t pick up fast enough. Sellers who list their homes before this wave arrives could benefit from less competition. Buyers, on the other hand, may find even better deals if they wait.

If you’re thinking about your next move, timing and strategy are more important than ever. Feel free to reach me at 205-531-2747 or send me an email at Brian@BrianKelleherTeam.com. Let’s discuss your best options to ensure you’re ready for the current housing market.