-- The share of US home-sale agreements falling through in March rose year over year amid ongoing economic uncertainty and high housing costs, Redfin said Wednesday.
Roughly 53,000 deals fell through last month, equal to 13.4% of homes that went under contract in the period and up from 12.5% a year earlier. The online real estate brokerage said that's level with 2023 as the highest March cancellation share on record, barring 2020.
"Buyers are getting cold feet," Redfin Premier agent Patricia Ammann said. "There have been layoffs, ups and downs in the market and geopolitical turmoil -- and on top of all that, housing costs are still high."
Last month, mortgage rates "jumped" in the wake of the US-Israel war with Iran that started at the end of February, while home-sale prices are increasing, according to the report.
"Because buyers are considering committing to spending so much money in uncertain times, they're extremely picky, which is leading some of them to back out before a deal closes," Ammann said.
Late Tuesday, US President Donald Trump extended a ceasefire with Iran, though he said the naval blockade of Iranian ports would continue.
Among major US metros, contract cancellations were most common last month in markets such as San Antonio and Orlando, where home searchers have plenty of options. They were least common in Nassau County, New York, the Redfin report showed.
Earlier this month, data from the National Association of Realtors showed that US existing home sales decreased in March, while pending home sales increased more than expected.