New listings slump. Have home sellers already called it quits?

New listings data

The past two years marked the lowest periods for new home listings in history, which is concerning given that 70% to 80% of home sellers are also homebuyers. Last year, I forecasted that we would see around 80,000 new listings per week during peak periods, but that goal fell short, reaching only 75,000. So far this year, we’ve exceeded 80,000 listings for two weeks and I hope to see a few more weeks above this threshold before the seasonal decline begins.

What we want to avoid is an early downtrend and more sellers exiting the market, similar to what we experienced in the second half of 2022, which was not ideal. I am hopeful for another upward bounce in new listings in the coming week. Traditionally, seasonal peaks for new listings range from 80,000 to 110,000…