Homebuyers are canceling sales at near-record rates
Nationwide, 14.5% of homes fell out of contract in September, according to Redfin data, the highest share on record apart from the early months of the COVID-19 pandemic.
Homes can fall out of contract for a number of reasons, such as inspection findings or financing pitfalls, or when a buyer just has a change of heart. But pending sales tend to fall through at higher rates when buyers have more options and more negotiating power, as they currently do in much of the country.
Indeed, metro areas that are notably buyer's markets, like Jacksonville and Tampa, Fla., and Las Vegas, all had contract cancellation rates approaching 20%, higher than anywhere else in the country. But they're relatively rare in strong seller's markets like San Francisco, where just 2.8% of deals fell apart.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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