According to Redfin, this means that it is a buyer market, which means that home hunters are more likely to go from contracts. The real estate company said sellers exceed the buyers in the housing market around 500,000, as it found that buyers are preparing more negotiations on the lever and asking the sellers to cover the costs of any repairs they need to carry out and require price reduction.
At the same time, many sellers are independent of future buyers who have become more demanding and seek more discounts.
About 56,000 US purchase contracts were canceled in August, accounting for 15.1% of houses for which the contract was concluded. This is the largest part of August transactions that transcend records dating back to 2017. 2024 August It also increased from 14.3% and far exceeds the Frenzy Norm of Pandemic Housing-11.4% 2021. August
“Home purchases are more likely to get because buyers and sellers are often not on the same page and do not want compromise,” Redfin said in a statement.
In a Redfin real estate agent survey, 70.4% stated that home inspection or repair issues were the reason for canceled contracts, which is the most important reason.
This was followed by 27.8%, who claimed that buyers’ funding had fallen, 21%, who said buyers could not sell their current homes, 14.9%, which quoted the buyer’s financial situation, and 12.9%, who claimed that the buyer had found another house for which they preferred.
In addition, in many cities, with the highest cancellation percentage in Florida and Texas, who noticed an increase in the supply of housing after the pandemic era exit to those states, caused the building boom.
Meanwhile, sellers still believe that their homes will indicate high prices as they did in 2020 and 2021. Housing Bonanz, or they paid for their property and do not want the price.
New sellers’ reality
“Some find it difficult to adapt to the reality that it is no longer a seller’s market because it seems that only yesterday’s home has made dozens of offers and received tens of thousands of dollars at the price requested,” Redfin said.
The report also pointed out that lower price homes are higher, as in recent years the total home ownership costs have jumped and those houses are more likely to raise problems during inspections.
Insurance premiums have increased in states such as Florida and California, which have noticed more natural disasters, thus contributing to increased property costs.
Meanwhile, the mortgage rates remain high, despite the decrease as the Federal Bank of Reserve reduced the costs of comparative borrowing.
In fact, the sale of a home is actually in fact September, for the first time in almost three months, even when the average mortgage rate has fallen nine weeks in a row.
Between weak demand, home sales are the worst year since 1995, as economic concerns have spread from buyers to sellers. A Fannie Mae survey has shown earlier this month that nearly 70% of Americans believe the economy is in the wrong direction, and 73% thinks it is a bad time to buy a house.
With all the anxiety, sometimes sellers who want to meet buyers’ demands still cannot overcome their cold feet.
“I was working with one seller who received 78 buyer repair requests after the inspection, and it was after the seller had already agreed to reduce its $ 375,000 price by $ 25,000 because the house needed some improvements,” said Dawn Liedtke, a Redfin real estate agent in Tampo. “The buyer returned and said they would handle the repair costs, but only if the seller would like to reduce the price of another $ 100,000. The deal did not work.”
This story was initially displayed by fortuna.com