Prob adding up insurance, taxes, maintenance, and closing costs. I think many homes are not maintained properly - home inspection reports might be sizing some to decline purchase. Also market still overpriced and inflated against real wages.
Housing prices are through the roof because
Democrats want you to live in Government housing.
They don’t want private ownership.
They want control.
They are backing out because the interest rates are set to go down? Duh?
Here in California it could very well be the problem with insuring the home. Either the buyer can’t find insurance or it’s so expensive it makes the entire purchase unmanageable. Some smart sellers are telling buyers up front what the insurance cost is likely to be just so they don’t end up with cancellations as buyers learn after making an offer that’s accepted.
“As of July 2024, the median home sold price in Orange County, California was $1,123,004”
OC houses were more like $250,000 to $300,000 20 years ago.
Inflation is not what has been driving OC prices. It’s been full cash offers from foreign buyers and from Wall Street investment firms deciding to turn America into a nation of renters. Enjoy.
They suddenly expect rate cuts?
This happens when interest rates are about to drop. Buyers locked in a rate a month ago that looks high compared to what’s expected in a few months. Now they want to wait for those lower mortgage rates.
Could be that buyers are realizing that the extra costs of purchasing/owning a home aren’t in that sales price they snatched up. This is the time of year most states start issuing and billing property taxes. Likely, the home owners insurances are increased significantly, too.
With Que-Mala’s new taxing schemes and planned spending ($5T) people are getting spooked.
Potential home buyers are doing the math while at the same time looking at the chances of losing their job in the next 12 months. They soon realize that they can’t afford to buy a home, pay the utilities, tax, utilities and also put food on the table.
I’ve read that houses are now staying on the market for longer and longer periods of time. The era of homes being bid on by multiple buyers and snapped up immediately is over.
Of course it depends on the locations, but I’ve seen that in 2023, the national average was 34 days. Thus far in 2024, the average is 61 days.