The US housing market is going through a terrible season: 15% of home sellers are being overlooked by buyers

In September, more than 53,000 home purchase agreements were cancelled, or 15% of all homes under contract, according to data. Redfin data Released Wednesday. This represents a jump of approximately 14% from the same time last year.

Housing markets with the highest percentage of pending sales that are out of contract include:

• Minneapolis (11%)
• Boston (10%)
• New York City (9.6%)
• Seattle (9.5%)
• Montgomery County, Pennsylvania (9.2%)

Buyers are chasing sellers because — given rising home prices and mortgage rates — they expect the homes to be near-perfect to follow contract, according to Redfin. plus, Joe Chaveza Redfin Premier agent in Kansas City, Missouri, said in a statement that he sees “a lot of buyer’s remorse.”

“Buyers make an offer, and then they start worrying that they could have found a better deal or a better home because there are more home sellers than buyers in the market,” Chavez said. “Some other buyers are holding back because they are Concerned about job security“.

Americans are very concerned about the economy, in fact, lately Fannie Mae The survey showed that 73% of them said that a Bad time to buy a house. Meanwhile, only 32% of consumers said they expect their personal finances to improve over the next year, and 23% said they think things will get worse.

But aside from general economic anxiety, buyers and sellers are failing to agree on liens and repairs, according to Redfin. This is a major shift from a pandemic-era housing market where many buyers chose to forego concessions and repairs in hopes of making a more favorable offer in a highly competitive housing market. But that dynamic has flipped as signs of a housing market looming Shift in favor of buyers.

“For potential buyers who have been waiting on the sidelines, the housing market is finally starting to listen,” chief economist Mark Fleming wrote in First American on August 29. mail. This is due to home price growth that is mostly flat or declining slightly due to decreased demand and increased supply, according to the National Association of Home Builders.

Redfin also says it’s a buyer’s market in most of the US, which is why many transactions are canceled.

“Those who are still in the market know they have leverage,” Redvin said. “It is common to be more selective and ask for repairs, price reductions and other concessions. When sellers back out, or when inspections reveal new problems, many buyers walk away.” Climate risks in the Sunbelt region have also discouraged some buyers from pursuing contracts, according to Redfin.

Some sellers are writing off homes

While many buyers are pulling out of home purchase agreements, some sellers are also pulling their homes off the market.

“It’s a clear signal that buyers have more power right now, especially with… Stock climbing “(Mortgage) rates remain high,” said Anthony Dujon, founder Anthony Dijon Luxury Real Estate Previously in Detroit He said luck.

This is because they are not getting the offers they think they deserve for their homes, and the average time on market is increasing. Modern Realtor.com The report shows that the typical home spent 62 days on the market, a week longer than the same period last year.

“What we are seeing nationally is a market that is gradually rebalancing, as buyers gain leverage and sellers face a trade-off: adapt to the market and sell at a lower price, or hold out and risk sitting out indefinitely,” Realtor.com chief economist Jake Krimmel previously said. luck. “Many sellers are still not pricing to sell.”

Redfin suggests that to maintain home purchase agreements, sellers should pre-screen, be realistic and flexible with liens and repairs, and price the home appropriately. Although buyers are “in the driver’s seat in most parts of the U.S.,” according to Redfin, they should still plan for pre-approval, research insurance costs and HOA fees, and not back out unless there are major issues or unreasonable repairs needed.