The Numbers Are Ugly — And Getting Worse

5.8% of all U.S. home listings were pulled off the market in April, according to Redfin. That ties December 2025 for the highest delisting share since March 2020, when COVID shut everything down.

Delistings rose 3.8% from March to April — the second straight month of increases.

A Record Gap Between Sellers and Buyers

As of February 2026, there were an estimated 629,808 more home sellers than buyers in the U.S. housing market, according to Redfin's Lily Katz. That's a 46.3% imbalance — the largest on record dating back to 2013.

A year earlier the gap was 449,409. It widened by 180,000 in twelve months.

Redfin defines any market with more than 10% more sellers than buyers as a buyer's market. By that standard, the U.S. has been in buyer's market territory since May 2024.

Why Sellers Are Giving Up

Patricia Ammann, a Redfin Premier agent in Arlington, VA, put it plainly: sellers are still expecting pandemic-era prices that no longer exist. "Prices aren't soaring like they were five years ago — high gas prices and the rising cost of living overall is trickling down to the housing market, making buyers much less likely to bid prices up."

Buyers are demanding inspections. They're offering under asking price. And sellers, many of whom bought or refinanced at low rates and mentally anchored to those valuations, are refusing to budge.

So they pull the listing and wait.

The cities where this is happening most: Atlanta had 1 in 10 homes delisted in April. San Jose hit roughly 9%. Los Angeles and Dallas both came in at 7.8%. Seattle at 7.7%, per Redfin data cited by CNBC.

Mortgage Rates Are Not Helping

The 30-year fixed rate briefly touched the 5% range at the end of February — then spiked when the U.S.-Iran conflict escalated, according to Mortgage News Daily. Rates have stayed elevated since.

As of last week, the average 30-year fixed rate for conforming loans dropped slightly to 6.57% from 6.65%, according to the Mortgage Bankers Association. Joel Kan, VP and deputy chief economist at the MBA, attributed the minor relief to "easing energy prices given the evolving situation in the Middle East."

But that tiny dip changed nothing for demand. Total mortgage application volume dropped 2.5% week over week, according to the MBA. Purchase applications fell 3% — the slowest pace since April.

Buyers aren't biting at 6.57%. They've seen what 5% looked like three months ago. They're waiting.

The Average Mortgage Payment Hit $2,000 — And It's Probably Higher Now

As of Q3 2025, the average mortgage payment crossed $2,005 for the first time ever, according to Realtor.com research cited by CNBC Select. That's 44% higher than four years ago.

22% of outstanding mortgage holders are now carrying rates above 6% — the highest percentage in a decade, per Realtor.com's analysis of the Federal Housing Finance Agency.

For someone trying to trade up, the math is brutal. They locked in a 3% rate in 2021. Selling means taking a 6.5%+ rate on their next home. So they don't sell.

Buyers Are Also Walking Away Mid-Deal

This standoff isn't just at the listing stage. As of October 2025, 15.1% of home purchase agreements were canceled, according to Redfin data reported by Scotsman Guide's Daniel Banta. Roughly 53,000 deals fell apart that month alone.

Buyers are using their new leverage to walk when sellers won't fix problems or cut prices. Sellers, facing the prospect of selling at a loss, are pulling listings instead of capitulating.

Redfin economist Asad Khan noted in late 2025 that approximately 15% of delisted homes were at risk of selling at a loss — the highest portion in five years. Some sellers literally cannot afford to take less.

The Full Picture

Most coverage frames this as a story about frustrated buyers who can't afford homes. That's half the story.

The other half: sellers are just as stuck. Many bought or refinanced at historic lows and can't psychologically or financially accept current market prices. They're not being irrational — they're trapped by math.

Selma Hepp, chief economist at Cotality, noted that "markets dependent on traditional mortgage financing are seeing prices stay relatively flat." The market is gridlocked.

The Iran conflict's direct impact on mortgage rates is also significant. The spike in rates earlier this year wasn't Fed policy — it was war premium baked into bond markets. That's a real variable that hasn't gone away.

What This Means for Regular People

If you're a buyer, you have more power than you've had in years. Negotiate hard. Demand inspections. Walk if sellers won't move.

If you're a seller who needs to sell, price it right the first time. Homes that sit get stigmatized. The longer it lingers, the worse your position gets.

If you're waiting for the market to "normalize" — there are 630,000 more sellers than buyers right now, rates are still north of 6.5%, and consumer confidence is shot. This market doesn't unlock until rates drop meaningfully OR sellers capitulate on price.

Neither looks imminent.

The housing market isn't crashing. It's just completely stuck. And the people caught in the middle are regular Americans trying to buy or sell a home — not Wall Street, not hedge funds. Just people doing the math and realizing it doesn't add up.