Parts of Florida are seeing the highest number of home purchases falling through, according to a new report by Redfin, as unsold properties start piling up in some of the state’s markets.
Why It Matters
A majority of housing experts expect home prices to soften and even decline across Florida this year as inventory grows and buyers remain cautious amid elevated mortgage rates.
In some of the most-overvalued markets of the Sunshine State, which boomed during the pandemic years when out-of-state people moved to Florida’s sunny cities, markets are already experiencing significant slowdowns and are shifting in favor of buyers.
What To Know
More than 41,000 home-purchase agreements across the country fell through in January, Redfin found, equal to 14.3 percent of homes that went under contract that same month. That was up by 13.4 percent compared to a year earlier, and it was the highest cancellation rate for this time of the year since 2017, when the real estate brokerage started recording these numbers.
Redfin said there are typically more cancellations of pending sales near the end of the year and fewer in the spring, the busiest season for homebuying. The levels of cancellations reported in January is above typical levels for this time of the year, but it is lower than the peaks seen in late 2022 and at the start of the pandemic…