Why Boston condo buyers are canceling deals
Why Boston condo buyers are canceling deals
The share of U.S. home-purchase agreements that collapsed in July rose to its highest level since November 2023, according to a report released this week by Redfin, as a growing surplus of sellers gives buyers increasing power to walk away from deals.
About 14% of homes that went under contract nationwide in July had their agreements canceled, up slightly from 13.7% in June, Redfin found.
Redfin said there are now 51% more home sellers than buyers nationwide, a gap that has left house hunters with far more room to negotiate — and to back out when inspections turn up problems, appraisals come in below the agreed price, or sellers won’t budge on repairs or concessions.
“Buyers know they have options right now, so they’re pushing harder,” Juan Castro, a Redfin real estate agent in Orlando, Florida, said in the report.
Elevated mortgage rates and high home prices have also left many buyers with little financial cushion, making them quicker to cancel rather than compromise, according to Redfin.
Atlanta had the highest share of canceled deals in July at 19.8%, followed by Houston at 19.6%, San Antonio at 18.7%, Las Vegas at 18.6%, and Orlando at 18.2%.
Redfin said those markets have since cooled, leaving them with a glut of listings and less urgency for buyers to close.
By contrast, cancellations were far less common in tighter markets. Nassau County, New York, had the lowest cancellation rate in the country at 3.5%, followed by San Francisco at 4.1% and San Jose, California, at 6.3%.
Redfin said stronger seller’s-market conditions in those areas give buyers less incentive to renegotiate or walk away once they’re under contract.
The rising cancellation rate adds to signs of a cooling housing market nationally, even as home prices remain elevated in much of the country.
In some of the hardest-hit markets, such as those in Texas, Redfin said there are now roughly twice as many sellers as buyers.
Redfin’s cancellation report is based on an analysis of home-purchase contracts nationwide.
Why Boston condo buyers are canceling deals
On this episode, Byron & Nicole discuss the highest rate of home buyer contract cancellations since the start of Covid.
In the month of June, over 14% of real estate contract deals were canceled.
