Contract cancellations

January 4th, 2012As the new year progresses we are starting to evaluate the year just past.  Much of the news is positive (more on this in upcoming entries), but one disturbing trend to emerge is that the rate of contract cancellations surged in 2011.  That is, buyers and sellers agreed on the price and terms of a sale and were moving forward, but the deal fell apart before closing.  The cancellation rate nation-wide jumped from 9% in August 2010 to 33% in October and November of 2011.

According to the National Association of Realtors, this high rate of cancellations has been caused largely by declined mortgage applications and bank appraisal values coming in below the negotiated price.

Locally, there is anecdotal evidence that the cancellation rate is up, but nothing close to the national numbers.  Once again I am glad I am a Realtor in Tompkins County.