Home buyers in Las Vegas are walking away from contracts in increasing numbers.
High interest rates, financial anxiety and an oversupplied market are pushing many to rethink their purchases before closing.
A recent Redfin report found 14.3% of U.S. homes under contract in April were canceled, marking the second-highest April cancellation rate on record, behind only the pandemic-era spike in April 2020.
In Las Vegas, the rate was even higher: 18.6% of purchase agreements fell through, placing the city eighth among major U.S. metros for canceled deals.
Here are two of the main reasons for the growing trend.
Higher mortgage rates and skyrocketing home prices are driving many to the brink. The average 30-year fixed mortgage rate hit 6.85% in June, more than double what it was during pandemic lows. That kind of increase can add hundreds — even thousands — to monthly payments when taxes and insurance are included.
“Groceries have been high, gas has been high, utilities have been high,” said Jillian Batchelor, a Southern Nevada realtor, in an interview with 8 News Now. “So buyers are more payment-conscious or payment-savvy than they really ever have been.”
And with inflation still weighing on American households, some prospective buyers are having trouble securing final approval. Others are rethinking whether they can afford the total cost once they see the final numbers — including homeowners association (HOA) fees and insurance premiums.
Redfin agents nationwide are also seeing buyers hesitate due to broader economic and political instability — including layoffs, tariffs and federal policy uncertainty. Another recent Redfin survey found that nearly 1 in 4 Americans scrapped plans for a major purchase this year due to tariffs.
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The housing market in Las Vegas is also experiencing a surge in listings.
“[A] buyer goes under contract,” Batchelor told 8 News Now. “And all of a sudden a week later they see, ‘oh there’s five more homes available in that neighborhood, this one might be nicer, this one might have more upgrades.’”
