Sellers, beware: according to a new report from Redfin, around 60,000 home-purchase agreements in the U.S. fell through in June, which equates to 14.9% of all homes that went under contract in the month. That’s 2.2% higher than cancellations in May, and 3.7% more than June 2021.
In fact, 14.9% is the highest cancellation rate since early 2020, when the COVID outbreak brought real estate transactions to a near dead stop.
And that’s not the only grim news in real estate recently. According to mortgage technology and data provider Black Knight, the pace of home price growth decelerated at a record amount in June, as higher borrowing costs weakened demand from buyers.
According to the report, home prices grew 17.3% year over year in June, which is down from a 19.3% gain the month prior. June marks the third straight month that home prices have slowed, and the 2 percentage point decline in growth from May to June marks the largest single-month drop on record since the early 1970s.
“While inflation and looming fears of a recession may be in the back of prospective homebuyer’s minds,” Andy Walden, Vice President of enterprise research and strategy at Black Knight told Yahoo, “the primary driver behind the slowing housing market is rising interest rates and tightening affordability.”
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