Homebuyers are backing out of deals at the fastest pace in nearly a decade
Redfin says 16.3% of signed purchase agreements were canceled in December as high costs, rising inventory and economic uncertainty make buyers more selective.
- Redfin recorded about 40,000 canceled purchase agreements in December, or 16.3% of contracts, the highest share since it began tracking in 2017.
- Sellers outnumbered buyers by roughly 47% in December, a gap of 631,535 and the largest margin in records going back to 2013.
- Rising inventory and high housing costs are cited as main reasons buyers are walking away, according to Redfin economist Chen Zhao.
- Pending sales fell 9% in December from November, and the elevated cancellation rate points to likely weak closed sales in January and February.
- Cancellation rates were highest in Atlanta at 22.5%, followed by Jacksonville and San Antonio at 20.6%, Cleveland at 20.2% and Tampa at 19.4%.