31% of condo reservations in DC are being cancelled. My only question is, how stupid are the other 69%?
I'd love to see these stats updated by city. Phoenix and Miami have to be crazy. Walk away from $10,000 or sign and lose $100,000? Tough choice
Sold -- or Not: When Home Buyers Walk
Some Will Give Up Thousands to Get Out of This Market
As the housing market cools, builders are reporting that more people are walking away from contracts and from tens of thousands of dollars in deposits.
Wall Street analysts say the Washington market is among those seeing the highest percentages of buyers abandoning ship -- more than double last year's rate, according to one research firm, and perhaps as high as one in three new-home buyers in some places. And nationally, some big builders are beginning to report cancellation rates upward of 25 percent.
The survey shows the cancellation rate locally highest in Fairfax County, at 30.9 percent, compared with 0.8 percent a year ago. Half of condominium buyers there canceled, compared with no cancellations a year ago. When the statistics are looked at by a single county or type of housing for one month, however, the number of transactions is small.
People who are buying for investments rather than residences are the most likely to bail out, experts said. They reason that it would be better to lose a deposit than to go ahead with an investment that could lose value, particularly if builders are cutting prices in the same or nearby projects.
June 27, 2006
Posted by blogger at 6/27/2006