Annuling of house sales reaches record highs

Why the sale is falling through it

Redfin said that various factors contribute to the peak in failed transactions:

• Rising delivery” falling question: Housing stock has risen to the highest level since 2020, making buyers more choices. In the meantime, the sale of houses reached a record low for January, with the exception of the early pandemic months. With less competition, some buyers deteriorate during the inspection period, hoping for a better deal.
• Economic: Make sure about rates, dismissal and federal policy changes make buyers – and sometimes sellers – hesitate. Many choose to wait for market instability before they are committed to a purchase.
• High mortgage interest and house prices: The average 30-year-old fixed mortgage interest rate reached 6.96% in January, a high eight months high. Although the rates have since fallen slightly to 6.76%, house prices remain increased, with the average price of American home sales by 4.1% on an annual basis. The combination of high costs and financial uncertainty has led to many potential buyers reconsidering their purchases.

“I see more home buyers from deals than normal, and I hear the same from other agents and mortgage providers in the area,” said Sam Brinton, a Redfin Premier agent in Salt Lake City. “Some buyers get cold feet with everything that happens in the world. But even with more cancellations there are still many buyers, and well -priced houses at desired locations sell quickly. “

South sees the highest cancellation percentages

Atlanta leads the nation in canceled houses sales, with 19.8% of the hanging deals that fall in January. Other cities with high cancellation percentages are:

• Orlando, Fla. – 18.2%
• Las Vegas – 17.9%
• Houston – 17.8%
• Jacksonville, FLA. – 17.8%

Florida experiences a delay while the state is confronted with increasing costs for house insurance, HOA costs and increasing risks of natural disasters. A growing range of available houses gives buyers more flexibility to walk away if problems arise during the inspections, Redfin added.

On the other side of the spectrum, San Francisco has the lowest cancellation rate of only 4.1%, followed by San Jose, California (5.9%), Nassau County, NY (6.8%), Oakland, California (8.4%) and Seattle (8.7%).

These markets remain the seller, with low stock and limited alternatives for buyers.

Forest fires Drive Los Angeles Sale Cancellations

In Los Angeles, 15.9% of the hanging housing sale fell in January, which marked the highest cancellation percentage of January since 2017. The Palisades and Eaton Wildfires, who have destroyed thousands of houses, have disrupted transactions and concern about buyer risks.

While cancellation percentages remain under the peaks of the Pandemic era-as the record of March 2020 is 16.4%-the rising trend on, constant uncertainty on the housing market.

Some brokers advise buyers to check houses they have missed, because deals are falling at a faster pace.

“It is worth checking in with the Listing Agent about a week after the house goes under contract,” says Alison Williams, a Redfin Premier Agent in Sacramento. “Twice since the beginning of the year I had customers secure houses because the original buyers withdrew before the property became redesigned

As the mortgage interest rate fluctuates and economic uncertainty persists, the housing market shifts in favor of buyers, giving them more room to negotiate – or walk away.