Nearly 15% of pending home sales fell apart last month. That’s the highest June fallout rate on record. And it’s another clear sign that buyers are gaining leverage.
A new Redfin report shows that 14.9% of home-purchase agreements were canceled in June, up from 13.9% a year ago. That adds up to more than 57,000 failed deals in a single month.
Redfin’s data goes back to 2017, and it shows that cancellations usually dip in the spring, not climb. What we’re seeing now is a market where buyers feel confident walking away.
And in many cases, they have good reason.
Why Deals Are Falling Apart
According to Redfin’s analysts, today’s cancellation rate is being driven by two main factors: buyer leverage and financial pressure.
Buyers are walking away because:
Some Sellers Are Willing to Bend
In the past, sellers could afford to say no to inspection repair requests or lowball offers. Not anymore. Today’s sellers know that once they get a buyer under contract, keeping the deal alive is priority number one.
Redfin’s report notes that sellers are often more willing to:
In some cases, those negotiations are significant. Redfin shared one example where a buyer negotiated a $1 million price reduction due to a septic issue on a luxury property.
Where Cancellations Are Happening the Most
Redfin’s analysis of 44 major metros found the highest cancellation rates in Sun Belt markets, many of which have high levels of new construction and increasing insurance costs.
Top metros for canceled contracts in June (compared to the national average of 14.9%):
On the flip side, the lowest cancellation rates were in:
Where Cancellations Are Rising Fastest
Most metros saw an increase in contract cancellations compared to last year. The biggest year-over-year jumps were in California:
Only seven metros saw slight year-over-year declines, including:
Key Takeaways for Real Estate Professionals
How Agents Can Help Prevent Cancellations
One of the most effective ways to reduce cancellations is by managing buyer and seller expectations upfront and providing full transparency throughout the process. Deals fall apart when communication breaks down. With the right tools and a client-focused strategy, you can help keep them together.
By: Sarah Letnz
I NowBam.com I July 24, 2025Photo: NowBam.com