Seattle homebuyers are less likely to back out of deals

Across the country, more homebuyers are walking away from purchase contracts, but in Seattle, most are staying the course.

In August, 15.1% of national real estate details fell through, marking the highest share since 2017. By contrast, the Seattle metro area saw a modest uptick from 9.7% to 10%, keeping local buyers among the least likely to renege on their contracts.

Other major tech hubs show similar resilience. New York City’s cancellation rate held steady at 9.3%, while San Francisco’s rose slightly from 3.6% to 5.9%. But in more volatile markets like the South, buyers are backing out in far greater numbers. Atlanta leads the nation at 21%.

The reasons vary. During the pandemic-era seller’s market, buyers often waived contingencies, leaving little room to withdraw from deals. As conditions have shifted toward more balance, contingencies such as inspection results, financing challenges, or low appraisals have reentered negotiations, and in many places, led to higher cancellation rates.

In Seattle, however, two factors are helping keep deals intact: financial stability and limited supply. According to Windermere Chief Economist Jeff Tucker, local buyers tend to have stronger financial footing and a clearer understanding of mortgage terms, making last-minute financing failures less common.

Low inventory also plays a role. Even as the national market tilts toward buyers, Seattle’s housing supply remains tight, especially for single family homes, and high demand often pushes buyers to waive contingencies to stay competitive.

The combination keeps the city’s deal cancellations comparatively low. While Seattle’s buyers now have slightly more leverage than during the height of the market, deep-pocketed purchasers and scarce listings continue to set the tone.

This post was based on information found on The Seattle Times.