More Chicago buyers backing out of home deals as market shifts
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Roughly 15% of pending home sales in the Chicago area fell through in January, up from 13% a year earlier, according to Redfin data.
The big picture: More deals are being canceled nationally, Redfin reports.
- Around 1 in 7 pending U.S. home sales fell through in January, the highest share for this time of year since at least 2017.
Homebuyers are backing out of deals for several reasons, including the shock of still-steep prices and mortgage rates, plus economic and political uncertainty, Redfin researchers say.
- With inventory on the rise nationally, some buyers are also pivoting because they think a better house has (or might) come along.
Between the lines: U.S. cancellations, which are typically more common near the end of the year and less common in the spring, remain slightly below levels seen when the pandemic started and when mortgage rates surged in 2022, the report authors note.
- Home purchases that fell through during a given month didn't necessarily go under contract that same month.
Reality check: Some shoppers are done waiting for housing costs to drop.
- Year-over-year home sales continue to slump but climbed 4.2% in February from the month before, per the latest National Association of Realtors data.
The bottom line: If you're on the hunt, don't count a listing out just because it's under contract.