15.2% of all Home Purchase Agreements Fell Through in August

Redfin, the Seattle-based real estate brokerage firm, reported today (9-26-22) that approximately 64,000 home-purchase agreements fell through in August. That is equal to 15.2% of all homes that went under contract—up from 12.1% in August 2021—and is comparable with July’s revised rate of 15.5%.

The Redfin report notes that the percentage of canceled contracts has now hovered around 15% for the past three-months—the highest level on record with the exception of March and April 2020, when the onset of the pandemic brought the housing market close to a standstill.

Redfin identified the Sun Belt cites, that surged in popularity and price during the pandemic, such as Phoenix, Tampa, Jacksonville, and Las Vegas, as cities where home buyers were most likely to back out of their deals. However, cities such as San Francisco and New York, which lost some of their real estate attraction during the pandemic, are now making a comeback and have the least number of buyers interested in backing away from the contract.