US Existing-Home Sale Contract Cancellations Rise to 15.1% in October

On Wednesday, Redfin reported that roughly 53,000 US home-purchase agreements were canceled in October, equal to 15.1% of homes that went under contract that month. That’s up from 14.3% a year earlier. Redfin noted that cancellations are seasonal, which is why October is compared with past Octobers.

Redfin said cancellations remain elevated as high housing costs and economic uncertainty cause some buyers to back out. Current conditions favor buyers, with home sellers significantly outnumbering homebuyers. Many buyers have room to negotiate and the flexibility to wait; if they walk away from one home, they can often find another that meets their needs.

San Antonio led all markets, with 21% of pending home sales falling through in October. It was followed by Fort Lauderdale at 20%, Fort Worth at 19.7%, and Las Vegas and Jacksonville, FL, both at 19.2%.

The lowest cancellation rate was in Nassau County, NY, at 4.4%. Next were San Francisco at 4.6%, San Jose at 7.0%, Oakland at 9.1%, and Montgomery County, PA, at 9.2%.