Delistings rise to historic levels

Happy Thanksgiving

Quick word to you here. We’ll be taking off for the holiday. Since there will be no newsletter this Friday, we want to take this moment here to wish you Happy Thanksgiving! 

We know that in our business, it can sometimes be very hard to take a vacation, so we hope you can take this time to relax, unwind, spend time with family, and enjoy everything this holiday is about. 

We have tremendous gratitude for all of you, and for the community we have created here, so please know that of all the many things we are grateful for this holiday season, a big one is you.

See you next Tuesday!

- James and David

Existing home sales rose slightly in October

In October, existing home sales were 1.7% higher year over year, totaling an annualized 4.1 million units. On a month-over-month basis, that’s a gain of 1.2%. Here are the other latest stats and trends to know via CNBC: 

• Inventory is tightening again – Supply fell 0.7% to 1.52 million homes, though still 11% above last year. At 4.4 months of inventory, conditions remain lean enough to support prices.

• Prices keep rising despite softer demand – The median sale price reached $415,200, up 2.1% year over year and marking 28 consecutive months of gains. Limited supply and strong high-end activity continue to buoy prices.

• Homes are sitting longer – Days on market rose year-over-year from 29 days to 34 days. 

• First-time buyers are returning unevenly -First-time buyers now represent 32% of sales, but face tougher conditions in the Northeast and West compared with the more affordable Midwest and South.

Our take

Sales ticked up in October, but the underlying story hasn’t changed: tight inventory is still doing the heavy lifting. Even with softer demand and longer days on market, supply remains lean enough to keep prices moving higher. Until affordability improves or more sellers list, this is the market we’re in — slow sales, firm prices, and buyers fighting for whatever is actually available.

Delistings spike to historic record

Nearly 85,000 homes were pulled off the market in September, up 28% year over year, reaching the highest total for any September in eight years. Redfin reports that 5.5% of all listings were delisted, the largest September share since at least 2016, as sellers stepped back instead of accepting lower offers. Here’s an overview of the trends we saw in September:

• Stale listings and slow demand are the biggest forces – About 70% of listings were “stale” in September (60+ days on market), and the typical delisted home sat for 100 days. High rates, high prices, and broader economic uncertainty—including delays tied to the shutdown—are keeping buyers on the sidelines.

• Delistings are keeping prices higher than expected – Listings are up 8% and pending sales are down 2%, yet prices still rose 2% year over year. When tens of thousands of sellers withdraw rather than cut prices, the pool of truly “available” homes shrinks and props up sale prices.

• Recent buyers are most likely to pull their listings – Nearly half (47%) of delistings came from owners who bought within the last five years. Many still expect pandemic-era price gains or don’t want to give up ultra-low mortgage rates—so they test the market and step back if they can’t get their number.

Our take

Delistings are quietly shaping the market. Thousands of sellers — especially recent buyers — are choosing to sit out rather than negotiate. With stale listings at record levels and nearly 85,000 homes pulled off the market in September, many homeowners would rather wait than accept a lower offer. That retreat is tightening real inventory. It’s a reminder that supply isn’t just how many homes are listed; it’s how many sellers are actually willing to deal. And right now, that number is shrinking.

Markets with the highest increases in mortgage originations

In Q3 2025, lenders issued 1.77 million mortgages, up 1.9% year over year, with total dollar volume reaching $600.4 billion. Purchase lending softened again, dropping 4.8% from Q2 and 6.6% year over year, with originations falling to 765,667 and $309.6 billion.

Refinance and HELOC activity, by contrast, posted gains on both a quarterly and annual basis. As a result, purchase loans slipped to 43.2% of all originations and 51.6% of total dollar volume.

Here are the top 10 markets seeing the highest increases in purchase-mortgage originations in Q3:

1. South Bend, IN: +51.7%

2. Indianapolis, IN: +51.4%

3. Honolulu, HI: +45.9%

4. Buffalo, NY: +38.3%

5. Tucson, AZ: +28.8%

6. Fort Wayne, IN: +21.6%

7. Evansville, IN: +21.3%

8. Davenport, IA: +14.9%

9. Youngstown, OH: +12.6%

10. Phoenix, AZ: +12.5%

Our take

Q3’s origination data shows a market still leaning heavily on refis and HELOCs while purchase activity continues to cool. Even with total originations up slightly year over year, buyers remain constrained by affordability, and that’s pulling purchase share down. The metros posting the biggest gains are mostly smaller, more affordable markets — a sign that price-sensitive buyers are chasing value wherever they can find it.

Market reports that are designed and proven to win more listings are one click away at altosresearch.com. Altos provides you with deep insights on any ZIP code, city, state, or metro to close more deals. Built for agents looking to use data to dominate the market.

Schematics

The news that just missed the cuts

• NYC leads the US in office-to-residential conversions 

• The one-page business plan Sharran Srivatsaa swears by

• Total pending home sales reach a multiyear high

• Mortgage credit report costs could jump 50% in 2026

• The Goldilocks case for home sales in 2026 from Mike Simonsen

Foundation Plans

Advice from James and David to win the day

Our number one job as agents is to close deals. And you can’t do that if you’re not generating leads. That’s how we make deals happen. As a rule of thumb, a minimum of 10% of your database should be buying or selling with you every year. These kinds of results only happen IF your communication with your clients is regular and systematic. Today, we’d like to offer you some advice on how to set up your database for success:

Put ALL your contacts in your database – Purchase a good CRM, and take the time to gather phone numbers, email addresses, and social media information for each entry. Enter your past clients, people from your sphere of influence, and buyers who bought your listings. Many times, they worked with another agent, but you are adopting them. You may also add your professional sphere of influence, like home inspectors and mortgage lenders. Add details to each person to help you remember them. 

Commit to adding at least five new people per week – Get into the habit of exchanging information on the spot when you make new connections. You don’t need to be pushy or salesy, but don’t be shy to share who you are and what you do. Genuinely believe in what you do because we agents actually add value to people’s lives. 

Update your database weekly as part of your daily minimum standards – Commit to never letting it get out of date, become neglected, out of control, or unwieldy. Simply put, if it’s hard to use, then you won’t be able to use it!

Change your mindset about your database – Don’t think of updating your database as a chore. When done right, not only will it pay dividends in deals, but you’ll actually build an asset you can sell later in your career. A well-kept book of business is a valuable thing. Never forget that

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

What slows you down the most — closing deals, finding clients, negotiating, or marketing yourself? Whatever your holdup is, we want to hear about it. Email us anytime.

Have a wonderful Thanksgiving, friends!! We hope you get some time with family and friends to relax, recharge, and enjoy the holiday. Thanks for reading, and we’ll see you back here on Tuesday!

- James and David