There is no sugar coating it, the housing market has significantly slowed down. With rising mortgage rates and the poor economy, it is hard for buyers to commit to a loan, with 30-year interest rates right now reaching as high as 7%.
According to a new StreetEasy report, not only are contracts not being signed, home sale contracts are falling through at the highest rate since the pandemic.
By the end of September, the number jumped to 1.7%. That number reached 2.1% in June of 2020, right in the heart of the pandemic.
In 2021, when interest rates were at a historically low rate (below 3%), the cancellation rate averaged just 1%.
Based on the data, it seems lower budget, first time buyers, are the ones who have been hit the hardest. The cancellation rate for deals below $800k rose to 2.8% by September. For apartments that were in contract for above $800k, the cancellation rate was below 1%.
For any questions on how to navigate through this challenging market, please contact me:
Justin Diamond
(914) 874-7537
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