Homebuyers cancel contracts at highest rate ever

(CNN)– Home sales are down, and one of the reasons why may surprise you.

December saw more than 40,000 would-be buyers back out of contracts.

According to Redfin, more than 16% of contracts written during the month didn’t end up going through.

The years-long slump in housing sales has been largely blamed on lack of available inventory and high mortgage rates.

Some experts say that’s only part of the picture, and buyers are becoming more selective.

To many analysts, it’s started to become unclear whether we are in a buyer’s or seller’s market.