Pending home sales post largest drop on record

Pending home sales fell to record lows in October as deal cancellations and price cuts reached new highs, according to a report from Redfin.

October saw pending sales drop 32.1% year-over-year, marking the largest decline since Redfin’s records began in 2013. A record number of home purchase agreements fell through as well, with 17.9% of homes going under contract last month. Additionally, nearly a quarter (23.9%) of homes for sale experienced a price cut, doubling the rate from the previous year.

Pending home sales fell the most in Allentown, PA (-54.9%), according to Redfin, followed by Greensboro, NC (-50.4%), Honolulu (-47.3%), Salt Lake City (-46%) and Jacksonville (-45.9%). Likewise, the highest percentage of deal cancellations were seen in Jacksonville (30.6%), Tampa (26.7%), San Antonio (26.6%), Atlanta (25.2%) and Las Vegas (25.1%), while the largest price cuts were in Boise, ID (68.7%), Denver (56.8%), Indianapolis (54.7%), Salt Lake City (54.7%) and Tacoma, WA (52.5%).