(NewsNation) — Would-be home buyers are getting cold feet when it comes to pulling the trigger on purchasing a house.
New data from Redfin shows home purchase cancellations are above pre-pandemic levels. Some of the areas that saw a boom in population during and after the pandemic are the same places where people are backing out of buying a home.
About 15.1% of all home sales fell out of contract in October, the most recent month of data available. That’s up from 14.3% a year earlier.
Realtors are saying the economy is the main factor with high housing costs and high interest rates. It’s also a buyer’s market right now, meaning those who back out of one deal assume they can find a better deal elsewhere.
Existing home sales fell 1% year over year, and despite it being a buyer’s market, the market itself hasn’t caught up because home prices continue to go up.
According to realtor.com, the national median home sale price in November was $409,200, which is a more than 1% increase from October and the 29th consecutive month home prices have risen.
Real estate analysts are saying that overall sales have largely stagnated since 2023, when around 4 million homes were sold each year.
San Antonio leads the nation in canceled deals, according to Redfin, with 21% of pending home sales falling through in October. It’s followed by Fort Lauderdale, Florida; Fort Worth, Texas; Las Vegas; and Jacksonville, Florida.
Florida buyers have cited natural disasters, and with that, increased homeowners’ insurance, as reasons for backing out.