Atlanta among top U.S. cities where home deals are falling apart
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Nearly one in five home buyers in Atlanta are ghosting sellers, according to a Redfin report.
Why it matters: Homebuyers are backing out of deals at "a fairly high rate" as their negotiating power grows and economic uncertainty mounts, among other reasons.
- "In a market where home prices and mortgage rates are high and competition is low, buyers want the home they buy to be perfect," researchers wrote in the report.
- Meanwhile, some sellers aren't willing to budge on price or repairs.
By the numbers: In Atlanta, 19% of pending home sales fell through in September, up from 16.5% in September 2024, the real estate site reports.
- Atlanta is tied for second with San Antonio in major metro areas, preceded only by Tampa, Fla., (20.1%).
- Nationally, 15% of pending sells fell through in September, up from 13.6% a year ago.
Context: The latest Georgia MLS data shared with Axios show the percentage climbed to 22.1% in October, compared to 18.2% last year in 2024.
What they're saying: Georgia MLS senior data analyst Zac Pope told Axios buyers have more negotiating power due to more inventory on the market.
- With more options, buyers are able to negotiate lower prices and require more concessions from sellers.
- The median amount of concessions in October was $5,000, up from $3,000 in October 2024, according to Georgia MLS.
- "It's easier for buyers to walk away from a house with problems uncovered during the due diligence period," Pope told Axios.
Between the lines: Cancellations are typically more common near the end of the year and less common in the spring.
- Homes that fell through during a given month didn't necessarily go under contract that same month.
What we're watching: Deals are increasingly collapsing across the Sun Belt, where homes aren't as affordable as they once were.
- Rising insurance costs, HOA fees and climate risks have also discouraged shoppers, the researchers note.
- Others walk away because they're confident they'll find something else, especially in states with more newly built housing.