Why Are Sellers Pulling Listings Off the Market This Spring?

What's happening in Santa Clara County right now, and what it means for you.

By Charm Hartland, Realtor® | Realty World Homes & Estates

Something is happening in our local market that does not show up in the headline numbers. Homes are going on the market, then quietly disappearing before they sell.

This spring, sellers across Santa Clara County are pulling their listings before they find a buyer. And according to new data from Redfin released this week, San Jose is the second-highest city in the entire country for this trend.

That is not a small footnote. That is a signal worth paying attention to.

The Numbers Tell the Story

Nationally, 5.8% of all home listings were taken off the market in April 2026. That ties with December 2025 for the highest rate since March 2020, when the pandemic stopped the housing market in its tracks.

Here in San Jose, the rate was 9.3%. Only Atlanta was higher.

Redfin Chief Economist Daryl Fairweather put it plainly: sellers are not getting the prices they want, and rather than lower their price, many are choosing to walk away.

On the flip side, relistings are also on the rise. In January 2026, 12.5% of homes on the market in San Jose were properties that had been pulled and then put back. That was the highest rate of any major metro in the country. Sellers who pulled their homes are circling back, testing the market again, hoping conditions have improved.

What Is Actually Driving This?

Here is what I am seeing on the ground in Santa Clara County.

Sellers are holding onto yesterday's prices. We had several years of intense competition, fast offers, and prices that climbed year after year. Many sellers went into the market expecting that same experience. When it did not show up, they pulled back rather than adjust.

Buyers have more choices now. Inventory has been building. In May 2026, Santa Clara County had 1,182 active single-family listings, with 1.6 months of supply. That is still a seller's market, but it is a different feel than the ultra-compressed market of recent years. Buyers are taking their time. They are doing their due diligence. They are not rushing.

Economic uncertainty is real. Trade policy, tech sector headlines, and questions about the job market have put a cautious tone on the spring buying season. Consumer confidence nationally has taken a hit, and that shows up in how buyers approach a purchase this large.

Mortgage rates have not fallen enough. Rates have stayed in the low-to-mid 6% range. That is better than the highs of 2024, but it still limits purchasing power. Many buyers who would love to move forward are still on the sidelines.

Sellers with low existing rates are reluctant to leave. Many homeowners locked in rates of 3% or 4% years ago. The math on giving that up is painful, and some are choosing not to sell unless they absolutely have to.

What This Means If You Are Thinking of Selling

Pulling a listing is not a failure. Sometimes the timing is not right, and stepping back is a smart decision. But going back on the market after a withdrawal does come with some risk: buyers and their agents can see your listing history in the MLS. A home that sat without selling can raise questions, even if everything about the property is solid.

The sellers who are succeeding this spring are doing a few things differently.

They are pricing to the current market, not the market of 18 months ago. They are preparing their homes carefully before going active, because buyers today have options and they will move on quickly if something feels off. And they are working with an agent who can read the pace of their specific neighborhood.

Evergreen is not the same as Los Altos. Milpitas is not the same as Saratoga. Knowing where buyers are active right now, and pricing and positioning accordingly, matters more than ever.

What This Means If You Are Thinking of Buying

If you have been frustrated by competition, this market is offering you something the last few years did not: more time. Homes are sitting a little longer. Sellers are more open to conversations.

That said, well-priced, well-prepared homes in Santa Clara County still move fast. The median days on market here is still just 11 days for single-family homes. The county is not a buyer's market in the traditional sense. It is simply a more balanced market than we have seen in a long time.

Good homes are still going quickly. The difference is that you may have room to ask questions, request a repair credit, or negotiate on terms in a way that was nearly impossible a few years ago.

A Final Thought

What we are watching right now is a market finding its footing. Sellers and buyers are negotiating a new normal. Neither side has all the leverage, and that is actually healthy.

If you have been waiting on the sidelines, watching and wondering, I am happy to sit down with you and talk through what the numbers look like for your specific situation. Whether you are thinking about selling a home you have lived in for years, or you are a buyer trying to figure out when to make a move, the answer is almost never one-size-fits-all.

Reach out anytime.

Charm Hartland, Realtor® Senior Real Estate Specialist (SRES®) Realty World Homes & Estates 408-712-3932 | Charm@HartlandTeam.com | www.HartlandTeam.com DRE #02001881

Data sources: Redfin (June 2026), MLSListings/Aculist (May 2026)