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[SITUATION] · [ACTIVE] · [BUSINESS]
2 clusters · 3 sources · 12 days · First seen · Last updated
Real estate contract cancellation trends
Overview
Reports indicate a rise in canceled real estate contracts, driven by high housing costs and mortgage rates exceeding 7%. In New Jersey, metropolitan markets such as New Brunswick and Newark experienced cancellation rates of approximately 11.9% and 11.7% respectively during September. This aligns with a national September cancellation rate of 14.5%, which Redfin describes as the highest on record excluding the early pandemic period.
Broader market data suggests that while cancellations are increasing, they affect between 10% and 15% of sales. Factors contributing to buyer caution include higher mortgage rates and an increased volume of available homes. A survey of real estate agents identified inspection or repair issues as the primary reason for buyers withdrawing, cited by 70.4% of respondents. Other contributing factors include low appraisals and disagreements over seller concessions.
Entities
Redfin · Cotality · New Brunswick · Newark · New Jersey
Timeline
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[BUSINESS] 3 sourcesReal estate canceled contracts on the rise
Canceled real estate contracts are rising as cautious buyers walk away due to inspection issues, low appraisals, and high mortgage rates, though most sales still successfully close.
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[BUSINESS] 2 sourcesNew Jersey housing market sees rise in contract cancellations
Nearly 12% of home-purchase contracts in New Brunswick and Newark, New Jersey, fell through in September as high mortgage rates and expensive housing prices squeeze buyers.
Sources
eelive.ng · keepingcurrentmatters.com · newalbanyohio.com