A quarter of San Antonio homebuyers backed out of contracts last month

A quarter of home buyers in San Antonio backed out of contacts with Redfin registered real estate agents, placing the Alamo City as the city with the No.5 highest percentage of people backing out of contracts in the nation, according to a recent Redfin report.

According to the online real estate brokerage report, more people backed out of home buying contracts in San Antonio than in any other major city in Texas, including Austin, where only 18% of home buyers decided not to go ahead with the sale.

Percent of Homebuyer Cancellations in Texas, according to Redfin:

1. San Antonio: 25%
2. Houston: 22.5%
3. Fort Worth: 21.7%
4. Dallas: 21.2%
5. Austin: 18.8%

Even so, San Antonio, Austin, Fort Worth, Dallas, and Houston had more prospective home buyers back out of the deal than the national average of 16.1% in July, according to Redfin’s data.

“Home-purchase cancellations may begin to taper off as sellers get used to a slower-paced market,” said Redfin Deputy Chief Economist Taylor Marr in the report. “They’ll likely start pricing their properties lower from the get-go and become increasingly open to negotiations.”

The latest sign of San Antonio’s slowing housing market comes after a recent report by Zillow found that 15% of those selling “mid-tier” homes in the Alamo City cut their asking price. Moreover, the number of active home listings in San Antonio has nearly doubled since April of this year, according to data from the San Antonio Board of Realtors.

News of San Antonio’s cooling housing market comes as the average national rate for a 30-year-fixed climbed to 5.13% this week as the Federal Reserve continues to hike interest rates to combat inflation, which hit 8.5% last month.

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This article appears in Aug 10-23, 2022.