The share of homebuyers backing out of contracts during May totaled 13.6% of the month’s home sale, according to new data from Redfin. That share was unchanged from April on a seasonally adjusted basis and is also marked the fourth consecutive month that contract cancellations have held steady at the same rate.
Cancellations were more prevalent in key southern markets. In Atlanta, 18.8% of home-purchase agreements were canceled in May, the highest share among the 50 most populous metros with sufficient data. Other markets with higher-than-average cancelation rates were Fort Worth (18.1%), Jacksonville (17.9%), San Antonio (17.8%) and Orlando (17.7%). Texas was home to four of the 10 places where contract cancellations were most common, and Florida was home to three.
“Sellers need to pay attention and price realistically, because the market is leaning toward buyers,” said Connie Durnal, a Redfin Premier agent in Dallas. “I recently worked with smart sellers who knew how to get their home under contract and get the deal done: They had paid $400,000 for the home, but they listed at $390,000 because that’s where the market was. They were willing to consider offers under the list price and negotiate with buyers, too.”
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