Nationally, about 15% of contracts were canceled last month. Jacksonville fit into a trend of Sun Belt cities experiencing higher rates of cancellations. Each of the top 15 cities for percentage of cancellations was in the Sun Belt, with Florida cities Orlando, Fort Lauderdale, Tampa, West Palm Beach and Miami all in the top 15.
"These areas initially attracted house hunters because they were relatively affordable, but an influx of demand caused prices to skyrocket, rendering them less attractive to many homebuyers," said Redfin's Lily Katz and Sheharyar Bokhari in the report. Redfin analyzed Multiple Listing Service dating to the beginning of 2017 for the report. The company noted that homes that fell out of contract during a given month didn’t necessarily go under contract the same month and that the data is subject to revision.With mortgage rates on the rise, it is possible that an individual's rate could go up between the time of going under contract and locking in a rate before closing.
Buyers also have more leverage now than they did earlier this year. If a home inspection turns up questions about a house, that could be enough for a buyer to walk away. Another house coming on the market and grabbing that buyer's attention is possible, too. These scenarios were unheard of last year and in the first few months of 2022. Back then, interest on a 30-year, fixed-rate loan was well below 4%, and demand for homes was surging. The typical house for sale would draw a bidding war and sell for above asking price, even if it was unattractive or in a less-than-desirable location. Deadline: Thursday, November 24, 2022We need your help to honor the young business professionals of Northeast Florida.