Some buyers are backing out during the inspection period because a better home comes along, and some are nervous about making a major purchase in uncertain economic times

Just over 57,000 home-sale agreements nationwide were canceled in June, equal to 14.9% of homes that went under contract that month, according to a new r epo r t from Redfin, the real estate brokerage powered by Rocket. That's up from 13.9% a year earlier and is the highest June share in records dating back to 2017.

Pending home sales are falling through at a higher rate than in the past largely because it's a buyer's market. There are hundreds of thousands more U.S. home sellers than buyers, giving buyers more options to choose from and more negotiating power. Buyers have room to be picky; they may back out during the inspection period if a better home comes up for sale or they discover an issue they don't want to fix.

Finances are the other major reason buyers are backing out of deals. U.S. home-sale prices are at record highs, and while monthly mortgage payments have fallen a bit, they're still near their all-time high. Some would-be buyers are canceling purchases when the reality of their monthly payment sets in. Additionally, Redfin agents report that some buyers are canceling because they're nervous about economic uncertainty surrounding things like tariffs, inflation, and the possibility of a recession.

"Buyers have leverage," said Crystal Zschirnt, a Redfin Premier agent in Dallas. "Some buyers are canceling deals because another home pops up in the same price range that they like better, or because they discover a flaw and get nervous it'll cost too much to fix. I've also heard of some buyers backing out because they're hoping home prices or mortgage rates are going to plummet soon, even though that's unlikely."

Redfin expects home prices to decline 1% year over year nationwide by the end of 2025, and mortgage rates to remain essentially unchanged in the 6.8% range.

In some cases, sellers are working hard to keep transactions from falling apart.

"Sellers are willing to make deals because in today's buyer's market, they don't want to lose out on a sale once they have a buyer under contract," said Van Welborn, a Redfin Premier agent in Phoenix. "A few years ago, when the market was more competitive, sellers were able to tell buyers to move on rather than pay for repairs found during the inspection period. Now, sellers are doing whatever they can to close the deal. I have one buyer who discovered a septic issue on an ultra-luxury home and was able to talk the seller into reducing the price by $1 million."

Sun Belt Metros Have the Highest Cancellation Rates

In Jacksonville, FL, more than one in five (21.4%) home-purchase agreements were canceled in June, the highest share of 44 major U.S. metros Redfin analyzed. It's followed by Las Vegas (19.7%) and Atlanta (19.6%).

The Sun Belt is home to all of the metros with the highest cancellation rates: San Antonio, Tampa, FL, Orlando, FL, Riverside, CA, Phoenix, Fort Worth, TX and Miami round out the top 10. Cancellations are especially common in Florida and Texas in part because there's a lot of new construction, giving buyers even more inventory to choose from. Some buyers in those areas are backing out due to sky-high insurance quotes related to the increasing frequency of natural disasters.

On the other end of the spectrum, just 5.4% of home-purchase agreements in Nassau County, NY were canceled in June, the lowest share of the metros Redfin analyzed. It's followed by Montgomery County, PA (6.8%) and Milwaukee (8.2%).

Contract Cancellations Are on the Rise in All But 7 Major U.S. Metros

The biggest year-over-year increases in contract cancellations are in California: In Anaheim, 15.2% of deals were canceled, up from 12.6%, and in Los Angeles, 17.1% were canceled, up from 14.7%.

The share of home-purchase cancellations fell year over year in June in just seven of the metros in this analysis, all by about 1 percentage point or less. The biggest decline was in Fort Lauderdale, FL (16.5%, down from 17.7%), followed by Denver (16.2%, down from 17.2%), and Orlando, FL (19%, down from 19.9%).

To view the full report, including charts and full metro-level data, please visit:

https://www.redfin.com/news/pending-sales-fall-through-june-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE:RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250721011503/en/

Redfin Journalist Services:

Kenneth Applewhaite

press@redfin.com

Redfin Reports 1 in 7 Pending Home Sales Fell Through Last Month, The Highest June Level on Record