Housing market sees rise in canceled contracts

In June 55% of houses sold above asking price
Published: Aug. 23, 2022 at 10:58 AM AKDT
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InvestigateTV - The number of sale agreements on existing homes canceled by Americans was just under 15% in June compared to 11% last year, according to a new report from Redfin.

Josh Stech, the CEO of Sundae, a real estate marketplace for investors, said inflation and higher mortgage rates are playing a role in what is happening in the market.

“The two main ones are inventory starts spiking and then mortgage rate volatility causes buyers to say, ‘you know what, I’m going to play this game a little bit and if rates drop, I’m going to cancel my contract to get out of the rate lock,’” Stech said.

He said in June, over 55% of homes across the country still sold above the asking price, which generally means there’s multiple offers. So regardless of the uptick in cancellations, Stech said it’s still a seller’s market.

To get the best price for your property, He urged sellers to look local and interview several agents in your area.

Stech said working with real estate agents and brokers that know your local market is the top way to make sure you get the best price for your property.