Just over 57,000 home-sale agreements nationwide were canceled in June, representing 14.9% of the homes that went under contract that month, according to a Redfin analysis of Multiple Listing Network data.
Year-over-year cancellations have increased by 13.9%, marking the highest June share in records dating back to 2017.
Pending home sales are falling through at a higher rate because there are hundreds of thousands more U.S. home sellers than buyers, giving buyers more options to choose from and more negotiating power, according to Redfin.
“Buyers have leverage,” Crystal Zschirnt, a Redfin Premier agent, said in a statement. “Some buyers are canceling deals because another home pops up in the same price range that they like better, or because they discover a flaw and get nervous it’ll cost too much to fix. I’ve also heard of some buyers backing out because they’re hoping home prices or mortgage rates are going to plummet soon, even though that’s unlikely.”
Read the full report here.
