The South Leads the Nation in Home Purchase Cancellations as Buyers Gain Leverage: Report

As inventory rises and price growth cools, buyers in some markets are more willing to walk away from contracts and keep shopping.

A real estate sign is shown at a home for sale in Houston, Jan. 13, 2021. Melissa Phillip/Houston Chronicle via AP

In some U.S. metropolitan areas, nearly one in five home purchase agreements are falling through as the markets there tilt toward buyers.

More than 48,500 home-purchase agreements were canceled nationwide in May, representing 13.6 percent of homes that went under contract during the month, according to data released Wednesday by online brokerage Redfin. The cancellation rate was unchanged from a year earlier and has remained largely stable since the beginning of this year.