A recent report from October 30, 2025, reveals a growing trend in the U.S. housing market where homeowners are increasingly opting to remove their properties from the market rather than reduce their asking prices. This shift is contributing to the continued elevation of home values. Data from Realtor.com shows a significant spike in delistings, with a 52% year-over-year increase in September, following an even steeper 72% growth in delistings during August.
The primary factor behind this surge in delistings is the reluctance of many sellers to give up the low mortgage rates they secured during the pandemic. Nearly 70% of homeowners in the U.S. have mortgage rates at or below 5%, rates that are far below current market levels. As mortgage rates continue to rise in 2025, many homeowners are finding themselves unwilling to sell and risk losing the favorable financing terms they locked in during the pandemic years.
As a result, the housing market remains tight despite an increase in active listings. However, the increase in new listings is tempered by the number of delistings taking place. In August 2025, for every 100 new listings that came onto the market, 28 were delisted—up from just 16 in August 2024. This growing trend of delisting properties rather than lowering prices is exacerbating the shortage of homes available for sale, further driving up home prices and limiting options for buyers.
For prospective buyers, this “lock-in” effect presents a challenging landscape. While new listings may continue to come onto the market, they are not being followed by many successful sales due to the limited number of properties that remain for sale. Homeowners, motivated by their fear of losing low mortgage rates, are effectively choosing to wait out the market rather than sell at a potentially higher cost of financing.
Real estate professionals are increasingly highlighting the “lock-in” effect as a key theme shaping the market dynamics as 2025 progresses. While the demand for homes remains strong, supply continues to be constrained not because homeowners are unwilling to sell, but because they are choosing to hold onto their properties in the hope that they can preserve their low mortgage rates.
This phenomenon is reshaping the traditional housing market cycle. Normally, a tighter housing inventory would lead to higher prices and more aggressive buying, but in this case, it’s the sellers who are holding tight, preferring to wait until market conditions change. Consequently, homebuyers are facing a higher entry cost, while homeowners who are in the position to sell are less likely to make the move unless they can find a suitable replacement property that also fits within their financing needs.
Ultimately, the continued tightness in the housing market is likely to persist unless homeowners are willing to adjust their expectations or the mortgage market undergoes significant changes. As long as sellers continue to hold onto their low rates, the “lock-in” effect will maintain its strong grip on the market, preventing a broader flow of homes into circulation and keeping home prices elevated.