Buyer's Remorse on the Rise
Home Sale Cancellations Surge
📰 A Summer Surge in Cold Feet
The latest Redfin report is in, and it’s a doozy: 14.9% of pending home sales were canceled in June, marking the highest cancellation rate for any June since at least 2017. That’s over 57,000 deals that unraveled—up from 13.9% this time last year—as buyers pull back amid high home prices, economic jitters, and increased bargaining power.
Yes, you read that right: the market has tilted in favor of buyers.
With more listings sitting and sellers growing anxious, buyers are getting bold. They’re negotiating hard—and walking away if things don’t line up. As one Redfin agent put it, “If a better home pops up or the inspection gets messy, they’re out.” Some buyers are even holding out altogether, betting that prices or mortgage rates will fall further.
💰 Sticker Shock + Uncertainty = Deal Breakers
While mortgage rates have ticked down slightly, they’re still hovering around 6.8%. Combine that with near-record home prices and it’s easy to see why some deals are collapsing at the final hour. Redfin projects a modest 1% national home price decline by the end of 2025—but for many buyers, the damage to affordability is already done.
Buyers aren’t just reacting to inspections. They’re crunching the numbers and deciding the monthly cost just isn’t worth it. Inflation, interest rates, and general economic nerves are keeping wallets (and contracts) closed.
Sellers, for their part, are shifting gears. Gone are the days of “take it or leave it.” In today’s market, they’re doing what it takes to keep the deal alive—even making million-dollar concessions when necessary.
🌴 Sun Belt Cities Lead in Cancelled Deals
The highest cancellation rates are popping up in the Sun Belt, where climate risk, rising insurance premiums, and new construction are all in the mix. Jacksonville, FL led the pack with a whopping 21.4% of contracts falling through in June, followed by Las Vegas (19.7%), Atlanta (19.6%), and Phoenix—Jenn’s home turf—making the top 10.
Meanwhile, more stable Northeast metros like Nassau County, NY (5.4%) and Montgomery County, PA (6.8%) had some of the lowest cancellation rates.
🐼 What This Means for Buyers and Sellers
If you're a buyer: You’ve got more negotiating power than you’ve had in years—but that doesn’t mean it’s easy out there. The best move? Get your pre-approval in place, crunch the numbers before you fall in love, and be ready to act fast when the right home comes along.
If you're a seller: Flexibility is your new best friend. Pricing smart, being open to concessions, and staying calm through inspections can make all the difference.
Want help navigating this shifting market?
Let’s figure out a game plan that fits your budget and timeline.
