The public may not notice this yet, but any active Real Estate Agent will have recognized this…
Recently there have been many more canceled escrows – sales where for some reason buyers have backed out.
They’ve been backing out for two reasons:
1. Increased rates had them thinking twice on what home they want to settle on, and more importantly the affordability.
2. Increased leverage in favor of the buyer. More homes on the market. A little less pressure from other people wanting buy. This gives buyers more breathing room…and more bargaining power.
Don’t get what you want from the seller? Within a certain time period, the buyer is able to back out of the deal.
A normal market sees about 10% of home sales canceling for one reason or another. In June of 2022 we saw 15% of sales cancelling – a 50% increase.