Buyers Are Bailing on Home Deals at the Highest Rate in Nearly 3 Years — Here's Why
U.S. homebuyers are walking away from deals at the highest rate in nearly three years, with cancellations reaching 14% in July.
In a post on X on Tuesday, Market commentator The Kobeissi Letter said 14% of home-purchase agreements that went under contract fell through in July, the highest rate since November 2023. The cancellation figures cited in the post come from Redfin’s analysis of seasonally adjusted MLS pending-sales data.
The national cancellation rate has remained between 13% and 14% for the past four years, well above the levels seen during the 2020-2022 seller’s market. Atlanta recorded the highest cancellation rate at 19.8%, followed by Houston at 19.6%, San Antonio at 18.7% and Las Vegas at 18.6%.
The Kobeissi Letter also said sellers outnumbered buyers by about 51%, near a record level, giving buyers more options when negotiating inspections, appraisals and concessions. The post also pointed to high home prices and elevated mortgage rates as factors leaving buyers with less financial room.
Buyers Gain Leverage
The elevated cancellation rate comes as buyers have more room to reconsider purchases. Sellers outnumbered buyers by 51.3% in July, while active homebuyers fell to a record-low 966,752. About 80% of major U.S. metros were buyer’s markets, giving purchasers more options when negotiating or deciding whether to proceed with a deal.
Mortgage rates remained another pressure point, with the 30-year fixed mortgage rate near 6.7%. Roughly half of outstanding U.S. mortgages carry rates below 4%, creating a significant gap between what existing homeowners are paying and what new buyers face.
Meanwhile, 44% of real estate agents viewed the housing market as balanced between buyers and sellers, while 37% identified mortgage rates as buyers’ primary concern.
The Kobeissi Letter said the housing market is under "historic pressure."
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Gorodenkoff via Shutterstock