More inventory was bringing balance to our usually fast moving market; or at least, it would have. Instead of steady sales activity, we’re now seeing a pattern of sellers who are stepping back. In fact, San Mateo County just recorded its highest rate of listing cancellations this year. Homes are being pulled off the market, just as summer inventory was gaining momentum.

So what’s driving the cancellations, and what does it mean for both buyers and sellers trying to read the market in real time?

The Moment: Inventory Up, Confidence Down

Starting in late spring, inventory across the Bay Area began to build. Unlike previous years, where summer brought a plateau, 2024 pushed more listings into the market, even in historically low-supply zones. But many of those listings lingered.

Instead of riding out the season, sellers began to hit pause. Homes are being canceled or temporarily withdrawn at an increasing rate, generally with the intent to re-list this fall with a “fresh” appearance and updated pricing.

Why It’s Happening: Expectation vs. Reality

The current market slowdown isn’t about demand disappearing, it’s about misalignment.

Many sellers are still pricing homes based on 2021–2022 market highs. They’re anchored to aspirational values shaped by peak pandemic activity, multiple offers, and ultra-low interest rates. Buyers in 2024 however are living in a different reality. Higher borrowing costs mean lower purchasing power, and that changes how aggressively they’re willing to engage.

When pricing doesn’t meet the moment, homes stall. Buyers hesitate. Sellers lose momentum. And without the right guidance at the start and along the way, sellers often opt to withdraw instead of course-correct.

What It Means for Sellers: Timing Is Only Half the Equation

In a market with more inventory and restrained demand, the key to success isn’t just timing—it’s strategy.

Pricing needs to reflect what buyers are seeing and feeling today, not what a similar home down the street might have sold for two years ago. Sellers who “test the market” without real conviction often end up pulling back, which can weaken their position as days on market tick up or when they return later.

If you’re thinking of listing this year, it's important that you price to today’s buyer psychology, not to yesterday’s headlines. Getting it right the first time isn’t just efficient. It’s essential.

What It Means for Buyers: Leverage in a Softer Market

For buyers, this market presents a rare window of opportunity. More inventory means more leverage and more sellers pulling back often means they’re still open to selling, just not publicly.

Withdrawn or canceled listings can quietly re-enter the market through private conversations, agent networks, or delayed fall relaunches. Working with an agent who understands how to track these shifts can unlock homes that aren’t visible on Zillow but are very much in play.

And remember, seller psychology matters. Sellers who’ve experienced a failed listing sometimes return to market with a more open mind on price, terms, and timing if their bottom line allows.

Looking Ahead: Is This Just a Pause?

The big question now is whether these cancellations signal a deeper market retreat or simply a strategic pause.

If interest rates ease or if buyers regain confidence in overall market conditions, momentum could return quickly. Fall has historically been the strong second wave for Bay Area real estate each year. Sellers may be waiting for that moment to relaunch with refreshed pricing, better staging, or just better timing.

But until then, we’re in a moment of recalibration.

Final Take: Read the Psychology, Not Just the Stats

Markets don’t move on math alone, they move on mindset. Right now, sellers are uncertain. Buyers are cautious. And the space between the two is where strategy makes the biggest difference.

Whether you’re stepping into or out of the market, the smartest move is one grounded in what today’s buyers want, what they’ll pay for, and what makes them act.

If you’re thinking about listing, or want to buy while others hesitate, let’s talk about how to navigate this unique moment with clarity, confidence, and a strategy tailored to you.

Let’s talk—and build a strategy that reflects what’s actually happening in your market, right now.

Strategy Matters More Than Timing.

There’s a lot of noise right now—headlines, rates, pricing debates—but what I see behind the scenes is simpler: people want clarity.

Sellers want to feel confident that their pricing is justified. Buyers want to feel empowered, not pressured. And the market, as always, responds to those who move with intention—not assumption.

In my experience, the best results don’t come from waiting for the “perfect time.” They come from being perfectly prepared. Whether that means launching now, adjusting expectations, or mapping out a smart fall plan—we’ll guide you through it, step by step. Because in a market like this, confidence comes from strategy—not guesswork.

Let’s connect. I’d love to help you align your next move with your vision for the future.—contact us today!

Market Report July 2025

Here's the latest January 2025 Market Update showing year-over-year data. The data includes all Single-Family and Condo & Townhomes in the California Area sourced from Broker Metrics & Info Sparks for the period from January 2025 thru March 2025. This may include preliminary data and may vary from the time this data was gathered. All data is deemed reliable but not guaranteed.