What’s Behind the Increase in Withdrawn Listings in Austin’s Real Estate?

The real estate market in Austin, Texas, has experienced notable changes in recent years, particularly in the number of withdrawn listings. Withdrawn listings refer to properties that were initially listed for sale but later removed from the market by the seller. The data from the Austin Area MLS reveals significant trends in this area, offering insights into the local housing market.

The overall trend in withdrawn listings over the past decade shows a pattern of stability followed by sharp increases. From 2014 to around 2020, the number of withdrawn listings remained relatively steady, hovering between 500 and 700 per month. However, beginning in 2020, there was a noticeable uptick, coinciding with the economic and social impacts of the COVID-19 pandemic. This period of volatility peaked in 2022, with over 1,200 listings being withdrawn, indicating a level of uncertainty in the market.

In September 2024, the number of withdrawn listings reached an all-time high of 1,472. This represents a significant increase from 2020 when only 330 listings were withdrawn in September. The data suggests that sellers are increasingly hesitant to keep their properties on the market, possibly due to changing buyer demand, fluctuating market conditions, or economic uncertainties. This spike in withdrawn listings marks a record high for the month of September over the past decade, far surpassing previous years.

Examining the month-over-month data offers further insight into the fluctuations in withdrawn listings. From November 2023 to February 2024, there was a series of declines in withdrawn listings, with January 2024 seeing the steepest drop at 27.8%. However, starting in April 2024, the trend reversed, with a notable 37.4% increase in withdrawn listings that month. This growth continued steadily through the summer, peaking in September with a 19.1% increase from the previous month. These monthly changes highlight the market’s volatility and the cautious approach that sellers are taking in response to evolving conditions.

The year-over-year data for the month of September underscores the drastic changes in the Austin housing market. Between 2023 and 2024, withdrawn listings increased by 51.1%, the largest jump in the last decade. This substantial rise suggests a growing trend of sellers pulling their properties from the market, likely due to concerns over market stability or shifting buyer preferences. In contrast, earlier years like 2019 and 2020 saw declines in withdrawn listings, indicating that the market has shifted considerably in recent years.

Overall, the data reflects a housing market in flux, with more sellers opting to withdraw their listings. The sharp increases in both month-over-month and year-over-year comparisons highlight the uncertainty that many sellers are facing. The rising number of withdrawn listings may point to larger economic factors influencing the real estate market, as well as shifts in buyer demand and market expectations.This detailed analysis of the Austin real estate market provides valuable insights into the current state of housing, especially for buyers and sellers navigating these changing conditions. With record-high withdrawn listings in 2024, the market remains dynamic and unpredictable, requiring careful attention from all involved.