House buyers nixed pending sales in August in Sun Belt cities like Phoenix, Tampa, and Las Vegas, Redfin said in a new report.
The tide has turned, and buyers are now backing out of deals in the Sun Belt as rates rise and home prices remain unaffordable.
A year ago, only 12.1% of home buyers were backing out of deals. Typically 12% of deals fell through prior to the pandemic, Redfin said. But the last time this number spiked — prior to this fall — was at the onset of the coronavirus pandemic in March/April 2020. Contingencies can include inspections to see if there’s any issues with the home, or whether they can get the mortgage required, or whether the appraisal is different from the agreed-upon amount. — Redfin And “some buyers may also be backing out of deals because they’re waiting to see if home prices fall,” the company added.
“Now their housing markets are among the fastest-cooling in the nation, giving buyers the flexibility to bow out,” they added.The share of buyers backing out of deals was the lowest in Newark, N.J., at 2.7%, followed by San Francisco, Nassau County, N.Y., New York City, and Montgomery County, Pa.
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