For the past several months, Realtors across the nation have been reporting an ever-increasing number of cancelled existing home salecontracts. The latest Realtors Confidence Indexnow puts the cancellation rateat 20 percent, way up from the historical norm of around four to six percent.
"On-time settlements were reported as declining from 65 percent to 47 percent," according to the Realtors. It's not why you think, or at least not why I thought. Inability to get a mortgage was reported by just 9 percent of respondents to the Realtor survey. Bigger issues were failed inspections, buyers with cold feet and adverse economic conditions. I'm sure appraisals figured in there as well.
It begs the question then, if these are just delays or true cancellations?