In what marks a striking trend in Phoenix's housing scenario, homeowners have been withdrawing their listings after failing to secure buyers, contrary to what one might expect in a state grappling with housing shortages. Phoenix New Times reports an analysis by Realtor.com that indicates a staggering number of homes are being delisted in Phoenix—30 for every 100 listed. Compared to the national rate of 13 delisted homes per 100 on the market, these figures are particularly noteworthy.
Local homeowner Rick Wertheim's experience mirrors this wider trend. After his unfruitful attempt to sell his rental property, Wertheim shared with FOX 10 Phoenix, "we were not getting a lot of nibbles." Despite his initial assumptions about market strength, no offers emerged within three months, prompting him to withdraw the listing. Trevor Halpern, a real estate expert at Halpern Residential at EXP, noted that this surge in cancellations is akin to a market reset after the explosive years following the COVID-19 pandemic. Still, he suggests a 64 to 65 percent listing success rate in the current market.
Mark Stapp, the director of the Master's in Real Estate Development program at Arizona State University, talked to Phoenix New Times and stated that the increasing number of delistings might be indicative of a self-correcting housing market. Stapp explained, "Sellers were motivated to sell at very high prices, because of the lack of inventory and the fact that the market was hyperactive." However, ambitious pricing inevitably led to homes languishing on the market, resulting in their removal.
The shifting market dynamics have also induced a palpable effect on sales strategies. Wertheim, for example, found success only after fresh strategies were employed, including employing a new agent, taking new photos, and crucially, staging his home for sale. His revamped approach yielded a quick sale after relisting, according to a statement obtained by FOX 10 Phoenix. On the other side, potential buyers facing high prices and interest rates are reportedly curtailing their home search, as per insights from a Bankrate survey reported by Fox Business.
Despite these challenges, the market's silver lining might not be too bright for prospective buyers. Stapp's comments to Phoenix New Times suggest that although negotiating power may have increased for buyers, home prices remain significantly high.
