These are the top 10 cities where housing contracts are falling through:
These are the top 10 cities where deals are falling through:
City Percentage of pending sales that fell out of contract
Jacksonville, Fla. 26.1%
Las Vegas, Nev. 23%
Atlanta, Ga. 22.6%
Orlando, Fla. 21.9%
Fort Lauderdale, Fla. 21.7%
Phoenix, Ariz. 21.6%
Tampa, Fla. 21.5%
Fort Worth, Tex. 21.5%
San Antonio, Tex. 21.1%
Houston, Tex. 20.6%
The tide has turned, and buyers are now backing out of deals in the Sun Belt as rates rise and home prices remain unaffordable.
Once pandemic boomtowns, 15.2% of homes in cities in the Sun Belt that went under contract in August fell through, or roughly 64,000 homes nationwide saw deals dropped, a new report from real-estate brokerage Redfin Corp. RDFN said.
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.
“A slowing housing market is allowing buyers to renege on deals because it often means they don’t need to waive important contract contingencies in order to compete like they did during last year’s home-buying frenzy,” Redfin noted.
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.
https://www.marketwatch.com/story/theyre-waiting-to-see-if-home-prices-fall-home-buyers-are-backing-out-of-contracts-in-the-sun-belt-at-a-record-rate-11664201599
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