Homebuyers are canceling their signed contracts at fastest pace in a decade

RALEIGH, N.C. (WTVD) -- Homebuyers are backing out of deals at the fastest rates in a decade.

According to Redfin, more than 40,000 signed home purchase agreements were canceled in December, representing 16.3% of all homes that went under contract.

"High housing costs and rising inventory have made homebuyers more selective. Home sellers outnumber buyers by a record margin, meaning the buyers who are in the market have options and may walk away if they believe they can find a better or more affordable home," said Chen Zhao, head of economics research at Redfin.

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Atlanta saw the highest contract cancelations in December at 22.5%. Cancelations were less common in the New York metropolitan area, San Jose and San Francisco, California.

Since pending sales dropped in December, closed sales in January and February are likely to dip.

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