WRE NEWS
Roughly 57,000 home sale agreements nationwide were canceled during June, which is equal to 14.9% of homes that went under contract last month.
According to a new report from Redfin, June’s share of canceled sales was up by 13.9% from one year earlier and marked the highest June share since data records were first compiled in 2017.
Redfin attributed the increased level of cancelations to elevated home prices, still-high mortgage rates and monthly payments, and an increased level of uncertainty on the economy’s near-future. Redfin is forecasting a 1% year-over-year dip in home prices by the end of 2025, with mortgage rates remaining essentially unchanged in the 6.8% range.
On a localized level, Jacksonville, Florida, led the nation with more than one in five (21.4%) home purchase agreements getting canceled in June, the highest share of 44 major metros Redfin analyzed. This was followed by Las Vegas (19.7%) and Atlanta (19.6%). The biggest year-over-year increases in contract cancellations are in California: In Anaheim, 15.2% of deals were canceled, up from 12.6%, and in Los Angeles, 17.1% were canceled, up from 14.7%.
On the other end of the spectrum, just 5.4% of home-purchase agreements in Long Island’s Nassau County, New York were canceled in June, the lowest share of the metros Redfin analyzed. This was followed by Montgomery County, Pennsylvania (6.8%) and Milwaukee (8.2%). The share of home-purchase cancellations fell year over year in June in just seven of the metros in this analysis, all by about 1 percentage point or less. The biggest decline was in Fort Lauderdale (16.5%, down from 17.7%), followed by Denver (16.2%, down from 17.2%), and Orlando (19%, down from 19.9%).