In Southern California, home sale cancellations have risen sharply, with one in six transactions falling apart in May. According to Redfin, an online brokerage, 2,261 home sales were canceled in May, marking the second consecutive month of increased cancellation rates compared to the previous year. In April, 16.5% of Southern California home sales fell through, followed by a 15.6% cancellation rate in May, both up from around 15% a year earlier.
The rise in cancellations comes as home prices level off and more properties become available on the market. Tom Pelton, a Coldwell Banker broker in Palm Springs, noted a “dramatic increase in buyer cancellations” as buyers no longer feel the urgency to purchase immediately. Many buyers now prefer to wait for better opportunities or back out of deals if they find more appealing options.
In California, home prices decreased by 0.046% year-over-year in May, while the number of homes sold fell by 8.2% and the number of homes for sale rose by 18.1% according to Redfin. This shift has contributed to a buyer’s market, where buyers feel they have more negotiating power and are willing to walk away from deals if sellers do not meet their demands…