Why Are So Many Real Estate Deals Falling Through At The Last Minute In The US?
Potential homebuyers in the US are backing out of their home purchase deals at a record rate. Real estate agents and experts throughout the country are stating that these deals are also falling through based on minor reasons, according to Yahoo! news.
“We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons,” said Rafael Corrales, a premier agent for Redfin in Miami. Miami recently saw 2,500 home purchases get canceled in the month of June.
“Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue,” Corrales stated.
Redfin recently released a report that showed 56,000 home purchases were canceled last June, which is about 15% of the homes in the US that went under contract, which is the highest percentage of any June on record.
“Buyers are getting more and more selective,” said Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area.
“They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list,” she added.
The average home price in America right now has increased by 4% when compared to last year, with an average price of $442,525 in June with an average mortgage rate of 6.92%
Some potential buyers are also waiting out the market and hoping that in the autumn/September time period rates could fall lower.
“With fewer takers, properties are languishing longer on the market, with the number of active listings climbing nearly 13% since last year,” according to Redfin.
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” said National Association of Realtors chief economist Lawrence Yun in a recent press release.
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
