As the economic climate changes, more homebuyers are starting to back out of deals, according to Redfin’s latest report…(Redfin)
- Nationwide, roughly 63,000 home-purchase agreements fell through in July, equal to 16.1% of homes that went under contract that month.
- This is the highest level since April 2020 and is just slightly lower than the peak in March 2020 when it hit 17.5%.
Among the 93 metropolitan areas surveyed by Redfin Jacksonville took the top spot with 29% of home-purchase agreements called off in July…
- Las Vegas took the number two spot at 27.4% followed by Lakeland, F (26.2%), New Orleans (25.9%), and San Antonio (25%).
This isn’t that surprising. If 78% of Americans think the housing market is going to crash, a lot of people are probably having second thoughts about buying. Nobody wants to buy at the top and with all this talk about a protentional recession many buyers think in a few months rates and prices will be lower. Alexis Malin, a Redfin agent in Jacksonville, said in the Redfin press release “Some buyers who are backing out of deals have this mindset that the market is crashing and they’ll be able to get a home for $100,000 less in six months. That’s not necessarily the case…”
This is not an issue of people not wanting to buy, they just think if they wait they might get a better deal. However, it is very important to remember how hard it is to time any market. I’m reminded of this great Shawn Gorham tweet…