More Would-Be Home Buyers Backing Out Before Closing

Real estate agents don’t have it easy these days — well, these years — and their jobs have become even more maddening lately thanks to the recent trend of home buyers canceling sales at the last minute. The rate of home sale cancellations rose from 4 percent in May to 16 percent in June.

CNBC reports the National Association of Realtors’ chief economist says he’s befuddled by the spike:

“I think it’s the broader, very slow economic activity. The economy is expanding at a very slow pace, job creation is very slow, the consumer confidence has certainly taken hit in the second quarter, so there could have been some buyers who had some second thoughts and just decided to pull out of the contract, but at the moment it’s still unclear as to why there was a measurable rise in cancellations.”

Why do you think more home buyers are backing away just before closing?

Cancellations Roil Realtors [CNBC]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.