In recent weeks, a growing number of home sellers have delisted their properties
(removing them from active listings) rather than enduring repeated price cuts that eat
into their equity. At the same time, buyers aren’t biting in many of the country's hottest market metros. Is demand down? Are we about to face a price correction?

Here's what's fueling this shift and why it presents golden opportunities for real-estate
investors.

The Two BIG Things Happening in the Real Estate Market

Sellers Are Fed Up with Price Reductions

According to a recent MarketWatch report, in specific overheated markets, sellers are “tired of cutting prices” and are “yanking their houses off the market” instead. This isn’t just anecdotal—it’s in the data! Realtor.com reports a 47% jump in delistings in May compared with last year, with 13 homes being pulled for every 100 new listings.

Simply put, many sellers prefer to wait it out rather than compromise on their asking price.

This isn’t even necessarily a matter of properties losing value due to increased supply. (By and large, appreciation is still up year-over-year.) It’s a combination of general unaffordability and largely unmoving interest rates around 7% that’s barring would-be buyers from the market. Do some sellers have unrealistic price expectations? Absolutely!

And with the wild appreciation we’ve seen in the years since the pandemic, it’s no wonder.

In so many ways, today’s housing market makes for a confusing picture. Sellers are cutting prices, but inventory is still tight. Demand is high, but buyers aren’t biting. Home values are up, but sales are plunging.

Market Conditions Give Sellers a Strategic Advantage

Here’s the interesting bit: though we seem to be in the midst of a market shift, it doesn’t appear to be the harbinger of a crash. Thanks to substantial home equity driven by past high prices, many homeowners aren't underwater. They can afford to pause, hoping for a market rebound, without fear of loss.

It’s not 2008, when every other homeowner was seemingly underwater and foreclosures ruled the market.

We have this juxtaposition of sellers choosing to wait out the disadvantageous conditions that buyers are facing (and that they, too, would face if they bought another home). At the same time, overall housing inventory is increasing, although it remains largely below pre-pandemic levels.

So, what does all this mean for real estate investors?

The Investor’s Edge: What It Means for You

Access to Withdrawn or Soon-to-Be Relisted Homes

Many sellers delist temporarily, only to relist later with hopes for better timing or new marketing strategies. These homeowners may be more willing to negotiate when they return, creating prime buying windows.

Increased Leverage in Negotiations

When sellers are frustrated by lengthy listing cycles and price reductions, they may be more willing to accept deeper discounts, expedited closings, or creative terms, especially with cash offers or flexible timelines. Because selling is taking longer, you’ll encounter more motivated sellers.

Less Competition from Typical Buyers

With buyers priced out or deterred by rising rates, investor offers face fewer competing offers.

Market Risks to Keep in Mind

Markets remain uneven: Not all areas have inventory rebounds—research local trends. Remember, your individual investment market conditions are more critical than nationwide trends.

Expect a softening market: Although home values are still increasing year-over-year, the rate of increase is now more in line with a “normal” pace compared to the pandemic years. Because of this, plan to hold. Passive investors are already buy-and-hold champs, but it’s essential to exercise patience in a softer market.

Further Reading: This is the Wisdom Behind Holding Real Estate Long-Term

Seller sentiment shifts: If mortgage rates drop suddenly, sellers may relist at firm prices…not negotiable! Their earlier frustrations, combined with an eagerness to capitalize on favorable interest rates, will make for stubborn sellers.

In short, seller shifts can greatly favor real-estate investors with:

• Access to motivated sellers in delisting cycles
• Facing less competition from standard buyers
• Negotiating favorable terms when sellers are fatigued

Of course, keeping up with all of this can be painful. We don’t recommend chasing after “hot” markets; instead, we focus on stability and long-term growth. In this season, buy-and-hold is your best friend. If you utilize a turnkey provider (like us), keep an eye on their new opportunities.

Remember, succeeding as a real estate investor isn’t about scoring the best deal on a rental property: it’s about crafting a reliable, risk-managed portfolio the right way.

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