Buyers backing out and contracts being canceled

[J. Mitchell Bernier]

CNBC wrote an article today showing people are backing out or canceling contracts, some are even leaving hefty deposits behind as well. Main reason is that interest rates are going up so much higher than where they were just 6 months ago. Will this continue? Most likely, yes. Buyers budgets will continue to get crushed as rates will stay elevated for the foreseeable future. Plus, as inflation stays way above 2% people's savings will continue to dwindle, meaning less money for down payments. Interesting times for sure. 

https://www.cnbc.com/2022/08/1...

[Chris Seveney]

@J. Mitchell Bernier

Makes sense. We will continue to see transactions drop substantially and listings increase. Question that is unknown is what will happen to prices.