Homebuyers in the US are pulling out of purchase contracts at a record pace, with 14.3% of sales agreements falling through in January, according to data from Redfin Corp. This marks a significant increase from 13.4% a year earlier and is the highest level for the month since 2017.
The reasons behind this trend are varied, but economic and political uncertainty appears to be a major factor. High mortgage rates, prices, and concerns about trade wars and federal government cutbacks are causing buyers to lose confidence in the market.
Redfin’s report also shows that contracts to buy resale homes slumped to a record low last month, further indicating a slowdown in the housing market. Atlanta had the highest rate of cancellations, followed by Orlando, Las Vegas, Houston, and Jacksonville, Florida.
Some agents are advising buyers not to give up on homes they want, even if they’ve lost a bidding war. They recommend checking with the listing agent after the contract is signed to see if other buyers have withdrawn, as this can lead to re-entry into the market.
Source: https://finance.yahoo.com/news/homebuyers-us-canceled-contracts-record-155647571.html