Redfin<\/a>, a real estate data and service provider.<\/p>\nAbout 53,000 home-purchase agreements \u2014 or 15.1% of homes that went under contract in October \u2014 got canceled in the U.S. that month, according to a recent Redfin analysis. That\u2019s up from 14.3% in October 2024.<\/p>\n
And several metropolitan parts of Florida saw higher cancellation rates in October when compared to a year earlier:<\/p>\n
\u2014 Fort Lauderdale region: A fifth of overall pending sales, or 20%, fell out of contract in October, or higher than the 17.5% recorded in October 2024.<\/p>\n
\u2014 Miami region: 17.6% of pending sales fell out of contract in October. It was 16.6% a year earlier.<\/p>\n
\u2014 Orlando region: 19.1% of pending sales fell out of contract in October, higher than the 18.6% documented a year earlier.<\/p>\n
\u2014 Jacksonville region: 19.2% of pending sales fell out of contract in October. It was 18.9% in October 2024.<\/p>\n
Related Articles<\/p>\n
Still, not all large metropolitan areas in Florida experienced higher cancellation rates.<\/p>\n
The West Palm Beach region saw 14.1% of pending sales fall out of contract in October, the same as a year earlier. The Tampa region had 19.1% of pending sales fall out of contract in October, or less than the 22.2% recorded a year earlier.<\/p>\n
Redfin\u2019s analysis relied on MLS pending-sales data. \u201cThe data is seasonal, which is why it compared this October to past Octobers,\u201d Redfin said.<\/p>\n
Contributing factors<\/p>\n
Buyers seeing more new homes in Florida and Texas likely is a contributing factor to why they\u2019re backing out of purchases. Other factors could be homeowner association fees and insurance rates.<\/p>\n
Dave Magua, a Keyes Company broker associate, put together a report about home-sale cancellations in Palm Beach, Broward and Miami-Dade counties.<\/p>\n
He found six key drivers behind the cancellations:<\/p>\n
\u2014 Insurance costs have soared in Florida, with homeowners paying more than $3,000 above the national average. This leads to unpredictable and unaffordable long-term ownership costs, and buyers often don\u2019t know about these \u201ctrue costs\u201d until after signing a contract, Magua\u2019s report states.<\/p>\n
\u2014 An inventory surge in available homes has \u201celiminated buyer urgency and shifted all negotiating power to buyers,\u201d which leads to be people backing away from deals in hopes of something better.<\/p>\n
\u2014 More sellers would rather pull a home off the market rather than reduce the price, and the South Florida market leads the nation in delisted homes, according to Magua\u2019s report.<\/p>\n
\u2014 Uncertainty and anxiety about the economy, job security and market direction is leading to a \u201cwait-and-see mentality.\u201d<\/p>\n
\u2014 Hurricanes and other natural disasters create \u201cclimate anxiety\u201d among buyers who then reconsider buying in South Florida.<\/p>\n
\u2014 Home-appraisal gaps are forcing some buyers either to pay the difference or walk away. These gaps can be caused by factors such as mortgage rate volatility or fluctuating interest rates.<\/p>\n
\u201cOne moment (the interest rate) is 6.1%, then the next day it\u2019s at 6.237%,\u201d Magua said. \u201cDebt ratio is so tight right now.\u201d<\/p>\n
If, hypothetically, a prospective buyer believes their monthly payment will be $1,000 but then the interest rate changes and their payment becomes $1,075, that can force people to walk away, Magua said.<\/p>\n
\u201cAt the end of the day it\u2019s going to come down to cost of living,\u201d Magua said. \u201cThat figure is scaring people.\u201d<\/p>\n
Home sale prices<\/p>\n
The median sale price for Broward County single-family homes in October was $611,250, which was a decrease from the median sale price in July of $620,000, according to the Broward, Palm Beaches and St. Lucie Realtors.<\/p>\n
The median sale price for townhomes and condos was $259,000, which also is a decrease from July when it was $265,000.<\/p>\n
The median sale price for Palm Beach County single-family homes in October was $643,000, which is higher than the median sale price in July when it was $613,250. The median sale price for townhomes and condos was $315,000, which also is higher than it was in July at $300,500.<\/p>\n
This aligns with what Magua is seeing in the market, which is that cancellations are highest in Broward County at more than 21%. In Palm Beach County, the cancellations are at nearly 18%.<\/p>\n
Magua predicts the market will remain stagnant for the first three months of 2026.<\/p>\n
\u201cWhat you\u2019re really seeing at the end of the day is a market correction,\u201d Magua said. \u201cIt hurts and it\u2019s really the market correcting itself slowly.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"More homebuyers have been backing out of home-purchase agreements in many parts of Florida and across the U.S.,…\n","protected":false},"author":2,"featured_media":89421,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[28,30,29,48299,19936,807],"class_list":["post-89420","post","type-post","status-publish","format-standard","has-post-thumbnail","category-florida","tag-florida","tag-florida-headlines","tag-florida-news","tag-newly-built-homes","tag-redfin","tag-south-florida"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/89420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=89420"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/89420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/89421"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=89420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=89420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=89420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}