26% of SW Florida Homebuyers Cancelling Contracts

 

LABELLE, FL. -- According to a report out today by Redfin, one in four homebuyers in the Cape Coral area are cancelling existing contracts to buy homes. And all around Florida buyers are cancelling contracts at a similar rate, more buyers backing out than any other state. 

Redfin says, "Some homebuyers are backing out of deals as a slowing housing market gives them more room to negotiate. Others are being forced to renege on contracts because higher mortgage rates mean some homes are no longer affordable.

"That’s the highest percentage on record with the exception of March and April 2020, when the housing market all but ground to a halt due to the onset of the coronavirus pandemic." 

As interest rates rise to the 5% or more, some buyers cannot afford the monthly mortgage payments at the new rate or no longer can qualify for financing. 

In the LaBelle area, home builders like Heartland Homes of Florida and Standard Land Development (selling via M.J. Newell Homes) have been asking contracted buyers to pay tens of thousand of dollars more than their contracted price last year, forcing some to cancel the sale and get their deposits back from the home builder.

Others in Hendry and Glades county were luckier and were able to qualify for USDA Rural Development Home Loans, with no or little down payment and interest rates locked in around 3%.

Drone Photography by Don Browne - Banyan Village construction in Port LaBelle, Fl