Buyers backing out of purchase agreements at elevated rates: Redfin

Buyers backed out of 56,000 purchase agreements in June, 14.9% of homes under contract, the highest ever for June. In March 2020, 16.6% backed out, reaching over 16% in Oct 2022 and 2023. Redfin agent noted buyers are becoming more selective due to high costs associated with buying a home.

Despite rising inventory, high prices, and mortgage rates, buyers are waiting for the Federal Reserve to lower rates in September. Hot post-pandemic housing markets experienced the highest cancellation rates. Florida metros led in cancellation rates in June.

Instances of deals being canceled last minute for minor reasons are increasing. Miami-based agent highlighted a 17.6% cancellation rate in June and emphasized affordability as the key issue driving cancellations.

Read at www.housingwire.com