Perspective is important when listening to news on the economy.
If you relied on President Joe Biden, he’d have you believe that Bidenomics is “working.” The only problem is the numbers say otherwise.
Existing home sales rose .6% last month, which may sound good. However, the monthly numbers were the lowest July level on record.
Nearly one out of five home-purchase agreements were canceled, setting another July record. Pending sales dropped 3% month over month and 6% year over year, which Redfin said were the biggest drops in nearly a year.
Home prices are sitting at just .7% below their record high, which also isn’t helping things.
The New York Post reports on why buyers are canceling their home-purchase agreements and what we can expect going forward. Here’s the start of the story:
A record 60,000 homebuyers pulled the plug on their deals in July, shattering previous records, according to a new report.
This mass exodus, accounting for 16% of all contracts inked that month, is the highest July cancellation rate since Redfin started tracking this data in 2017.
The carnage was most brutal in regions where builders have been going gangbusters in recent years, flooding the market with new homes. Tampa and Fort Lauderdale in Florida, and San Antonio in Texas, led the charge with the highest rate of busted deals, according to Redfin.
With inventories swelling, sellers were forced to swallow their pride and slash prices.
Zillow reported that over 26% of homes on the market in July saw price cuts, the most significant share since 2018. For those still in the game, this oversupply spells opportunity — not just in negotiating prices, but even squeezing out lower commissions.
So, what’s driving this buyer’s remorse?
Despite mortgage rates dipping, other factors are pushing potential homeowners to slam the brakes. The biggest concerns? Sky-high home prices and the looming uncertainty of the upcoming presidential election.