Why Are So Many Homes Being Pulled Off the Market?

By Bryan David

Bryan David is one of the best REALTORS® serving Ocean Springs, Biloxi, Gulfport and the entire coast. He is a Biloxi native, military veteran and retiree, and a multi-year top-producing agent with hundreds of satisfied clients.

Have you noticed “for sale” signs coming down in your neighborhood without a “sold” sign going up? You’re not imagining things. In December, one out of every ten homes was pulled off the market without selling. That’s a 64% increase from the year before.

What’s going on? Buyers are stepping back. With mortgage rates at 7%, many are hitting pause. When rates were closer to 3%, homes sold fast. But with higher rates, fewer buyers are out there and it’s changing the game.

The locked-in effect. Most homeowners today are locked into low mortgage rates 2.5%, 3%, maybe 4%. Their payments are affordable, and rent prices keep climbing. Trading that for a 7% loan just doesn’t make sense for many. So they stay put, waiting for rates to drop. But rates haven’t dropped, and there’s no sign they will soon.

Still, homes are hitting the market. Why? Life happens. According to Zillow, 78% of sellers are moving because of life events like job changes, growing families, financial shifts. These aren’t optional moves. These sellers need to sell, and once they do, they become buyers too.

More homes. Fewer buyers. Inventory is up 16% compared to last year. But buyers? Many are on the sidelines. High rates and rising insurance costs, especially in coastal areas are keeping them away. First-time buyers, in particular, are struggling. As a result, we’re seeing more homes sit longer and more price drops.

In fact, Zillow reports that price reductions are up 23% from last year. That’s a clear message to sellers: pricing your home right matters. Overpricing can backfire. If your home sits too long and you start cutting the price, you lose momentum and money. On the other hand, buyers now have more choices and more room to negotiate.

The shadow inventory is coming. Many sellers pulled their homes off the market during the fall and winter. But they’re not gone—they’re waiting for spring. Once the season hits, we’ll likely see a surge in listings. More homes mean more competition, so sellers will need to stand out.

If you plan to sell, don’t wait. Beat the spring rush and list your home before competition increases. Clean it up, price it right, and talk to a local expert. And if you’re buying, your patience could pay off. More listings mean more options and better deals.

Want to talk strategy? Call me at 228-215-1861 or email bhgre@expectrealty.com. Whether you’re buying, selling, or exploring your options, I’m here to help.