Nearly 60,000 home purchase agreements were canceled in August, which is equal to 15.7% of homes that went under contract that month.
According to new data from Redfin, August’s percentage of canceled deals is up from 14.3% one year ago, and it is also the highest percentage since October 2022.
These cancellations are likely due to the fact that mortgage interest rates rose to more than 7%.
Yet, I think it is important for homeowners to understand that there is always the chance that a home buyer will back out due to a job loss or an accident or yes even cold feet.
We do our best to weed out the offers that have the most red flags but things happen that are beyond our control, or beyond anyone’s control. There were a few home purchases that were canceled in the early days of the pandemic as some homebuyers were laid off.
The home is sold after the closing and not before.
