More than 42,000 home sale agreements fell through in February, equal to 13.7% of properties that went under contract during the month.
According to a data report from Redfin, this is up from 12.8% one year earlier, and it marks the highest February share in records dating back to 2017. Redfin based its findings on MLS pending sales data.
Among the 47 major metros analyzed by Redfin, Tampa led the nation with 18.1% of home purchase agreements being canceled in February. It’s followed by four other southern metros: San Antonio (17.9%), Atlanta (17.9%), Jacksonville (17.5%) and Fort Worth (17.3%). Contract cancellations rose most in Los Angeles, to 15% in February from 12.1% one year earlier.
On the flip side, contract cancellations are least common in the Bay Area. In San Francisco, just 3.7% of deals fell through in February, the lowest share among the metros. Next come New York’s Nassau County (4.5%), San Jose (5.4%), Milwaukee (7.5%) and Oakland (7.7%).
how would redfin know????? we had a offer fall though that was only known by buyer, seller, sellers agent & buyers agent!!!!
Perhaps, because the MLS clearly states when Active listings are changed to Active Under Contract, Pending and finally, Sold. Redfin probably uses those data points, which detail the units that go back on the market after being listed as Under Contract. I’m just guessing. Never worked for Redfin. Seems to make sense. Also, even if Sellers never list their properties, maybe Redfin is getting numbers directly from Mortgage Brokers associations.
Part of that 13.7% of escrows that fell through in February may have been because of lenders refusing to lend on condo buildings that have damaged balconies in the building, even if the damage is not in the unit being purchased.
In California, by law all condo and apartment buildings with balconies had to complete state inspections by the end of 2025. Many repairs have not yet been made.
I sold a condo last year to a Buyer whose lender refused to approve his loan until repairs to all balconies in the building had been made, even though my listing needed no repair at all. Luckily, it was a small complex and only three other balconies needed repair. And my Buyer waited. It cost me. I was told by the Buyer’s lender that all lenders are looking very hard at home loans for condos, they almost don’t want to approve any loans for them anymore, due to safety concerns. It has been like this since June, 2021, after the collapse of the Surfside building in Florida that killed 98 people.
Underwriters comb all HOA docs for any balcony information related to safety or mold issues that have been noted by the HOA, even if the items of concern present no immediate problem and are noted and scheduled as “preventative repair.”
Good article, except that the reasons why should be part of this article people are reading. Failed to get fianacing, seller unable to find suitable housing, etc. Incomplete survey and study. Need more facts.