Phoenix homeowners are delisting properties en masse as market shifts

For years, Phoenix has been in the midst of a housing crisis.

Home prices skyrocketed during the pandemic, turning starter homes into forever homes. One study found that a quarter of residents have considered leaving the state over housing costs. Arizona is so desperate for housing, lawmakers from both parties have teamed up to pass bills to limit municipal zoning restrictions and spur homebuilding.

Despite that, Phoenix somehow leads the nation in pulling homes off the market without making a sale. According to an analysis by Realtor.com, there are 30 homes being delisted in Phoenix for every 100 that hit the market. The national rate is 13 delisted homes per 100 put up for sale.

What’s up with that? If Arizona is so hard-up for housing, why are available homes lingering so long on the market without a sale? According to Mark Stapp, director of the Master's in Real Estate Development program at Arizona State University, the high number of delistings might be a sign that the housing market is correcting itself.

“This is not chicken-little the sky is falling by any stretch of the imagination,” Stapp said. “Sellers were motivated to sell at very high prices, because of the lack of inventory and the fact that the market was hyperactive.”

Indeed, the market has been on fire since the COVID-19 pandemic. According to Redfin, the median Phoenix-area home price was $283,000 in September 2019. In May 2022, it spiked to $486,000. The market has cooled off somewhat since then, but only by a hair. In July of this year, the median home was going for $453,000.


Stapp said sellers got used to pandemic-era chaos: bidding wars, offers over asking and homes flying off the market in days. At some point, though homesellers were pricing out all the buyers. Hence, homes sat unsold on the market and eventually the “for sale” sign came down.

“They can't sell (the property) for as much as they thought they could,” Stapp said.

Or, as one Reddit user put it: “That’s right, Brenda. I’m not gonna overpay for your undersized shitshack.”

Some homes are being sold at lower prices. Another Realtor.com report showed more than 30% of Phoenix listings had price cuts in June, ranking the Valley second in the nation for the most markdowns. Phoenix simply has a lot of homes for sale and just not that many people wanting to buy.

As for the delisted homes, that might mean those sellers don’t have to cash out.

“If you delist your house, it's because you don't have to sell it,” Stapp said.

So, does that mean it’s finally going to get cheaper to buy a home in Phoenix? Not exactly. Buyers may have more negotiating power than last year, but they still are paying a hefty price to get into a new home.

“Is this a full-on buyer's market? Now have we turned the corner and now you're going to be able to buy houses for a bargain?” Stapp said. “The answer is no, you're not.”