IE Business Daily Business news for the Inland Empire.
An estimated 56,000 home purchases were canceled nationwide in August, according to a report released Oct. 7.
That was 15 percent of the homes that were under contract to change owners, up from 14.3 percent year-over-year, and the highest August cancellation rate since 2017, Seattle-based Redfin reported.
“Home purchases are falling through more frequently because buyers and sellers oftentimes aren’t on the same page and aren’t willing to compromise,” the report states.
Buyers are reluctant to close a deal because of high mortgage rates and uncertainly about the economy’s immediate future. They’re also asking for concessions, including repairs and a lower price.
“It’s a buyer’s market, meaning buyers hold the negotiating power,” the report states.
In September, Redfin surveyed 443 of its agents who dealt with at least one home sale cancellation during the previous three months.
Most said a bad home inspection or repair agreement falling through caused the agreement to be dropped, followed by bad financing or the buyer’s inability to sell their current home, according to Redfin.
