Record 60,000 home deals crash in July amid election fears

A record 60,000 homebuyers pulled the plug on their deals in July, shattering previous records, according to a new report.

This mass exodus, accounting for 16% of all contracts inked that month, is the highest July cancellation rate since Redfin started tracking this data in 2017.

The carnage was most brutal in regions where builders have been going gangbusters in recent years, flooding the market with new homes. Tampa and Fort Lauderdale in Florida, and San Antonio in Texas, led the charge with the highest rate of busted deals, according to Redfin.

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With inventories swelling, sellers were forced to swallow their pride and slash prices.

Zillow reported that over 26% of homes on the market in July saw price cuts, the most significant share since 2018. For those still in the game, this oversupply spells opportunity — not just in negotiating prices, but even squeezing out lower commissions.

So, what’s driving this buyer’s remorse?

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Despite mortgage rates dipping, other factors are pushing potential homeowners to slam the brakes. The biggest concerns? Sky-high home prices and the looming uncertainty of the upcoming presidential election.

“When rates finally dropped, buyers got excited, and we saw more activity,” said Nicole Stewart, a real estate agent with Redfin in Boise, Idaho. But now, she says, many are hitting pause because “a lot of people are also concerned about the political climate.”

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Stewart added that even those who can afford a home are “holding off because it’s unclear where the country will be in six months.”

The worry over politics isn’t entirely new, but it’s putting a notable dent in the market this year. While presidential elections don’t usually hammer home prices directly, they do tend to cause a pre-election chill in sales.

In nine of the last 11 elections, home sales spiked in the year after the ballots were counted.

“Though in reality, who is in the Oval Office probably won’t have much of an impact on the housing market,” Stewart said.

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