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Home-purchase cancellations rise to nearly 3-year high in July

In July, 14% of deals that entered contract fell through, with buyer power rising as the number of homebuyers hit a record low and sellers outnumbered buyers by 51%.

Reported · Written up by our desk · Residential

Home-purchase contract cancellations in the United States climbed to a nearly three-year high in July, according to a Redfin analysis of seasonally adjusted MLS pending-sales data. Nationwide, 14% of home-sale agreements that went under contract in July fell through, the highest share since November 2023, up from 13.7% in June.

Redfin said the cancellations remain within a narrow band over the past four years, but the July uptick is notable as buyers gained leverage. The outlet attributed the shift to a record low number of U.S. homebuyers and a near-record 51% more sellers than buyers in the market.

Affordability pressures also appear to be making buyers more cautious, with high home prices and elevated mortgage rates limiting financial flexibility. Redfin noted that deals can unravel when inspections reveal problems, appraisals come in low, sellers do not agree to concessions, or buyers rethink the long-term monthly payment.

Redfin added that sellers can reduce the risk of a deal falling apart by preparing in advance, including completing a home inspection before listing to address potential issues early, or entering negotiations with the understanding that problems may emerge later.

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