According to the report, 15.2 percent of homes in cities in the region that went under contract in August fell through. In other words, roughly 64,000 homes nationwide saw deals drop.
Redfin noted that only 12 percent of contracts were aborted prior to the Wuhan coronavirus (COVID-19) pandemic. The last time this number spiked was at the onset of the pandemic in March 2020.
"A slowing housing market is allowing buyers to renege on deals because it often means they don't need to waive important contract contingencies in order to compete as they did during last year's home-buying frenzy," the Redfin analysts noted. "Some buyers may also be backing out of deals because they are waiting to see if home prices fall."
Buyers were canceling contracts in Sun Belt cities, including Phoenix, Tampa and Las Vegas. Meanwhile, the company is least expecting clients to back out of purchases in big cities such as San Francisco and New York.