More Metro Detroit homebuyers are canceling deals
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Roughly 17% of pending home sales in Metro Detroit fell through in January, up from 14% a year earlier, according to Redfin data.
The big picture: More deals are being canceled nationally, Redfin reports.
- Around 14% of pending U.S. home sales fell through in January, the highest share for this time of year since at least 2017.
Context: 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.
Zoom in: Royal Oak-based Realtor Danny Dedic tells Axios that, as a rule, he typically plans for 10% of contracts to fall through due to run-of-the-mill financing problems, buyers' cold feet or unforeseen circumstances.
- The jump to 17% this January is not overly concerning, he says, pointing out that January is generally a bad month for home sales.
- Dedic is advising his clients to put their houses up for sale ASAP because the market should be fairly robust this spring and summer.
Yes, but: Like the rest of the global economy, the housing market is adjusting to the impact of President Trump's tariffs.
State of play: Mortgage rates plunged last week to about 6.6%.
- In January, the rate was as high as 7.26%.
Between the lines: Declining mortgage rates usually give homebuyers more purchasing power. Harnessing that power, however, will be difficult amid the tumult.
- "Falling rates would juice the housing market, but the general economic uncertainty will hold it back," Joel Berner, senior economist at Realtor.com, tells Axios.