The rate of home sale cancellations last month was the highest in nearly three years.
New data from the online real estate brokerage Redfin found that 14% of the deals made to buy homes in the U.S. fell through in July, the most since November 2023 on a seasonally adjusted basis.
The share of deals being canceled has been climbing across the country since the bidding wars of the COVID-19 pandemic-era home buying frenzy wound down, Redfin’s data showed. Then, some 11% of home sales were being canceled.
Still, in the past four years there have been only “small swings” in contract cancellations, according to Redfin. In July 2025, the rate was at 13.4% and by this June, it had reached 13.7%.
Why more home sales are being canceled
Cancellations are ticking up “because buyers have the power,” Redfin reported, noting that there were fewer people looking for a home in July with a near-record 51% more sellers than buyers.
The shift to a buyers market means house hunters have more options. That makes it easier for buyers to walk away from a deal if problems turn up in inspections, appraisals come in low, or sellers won’t agree to concessions, the brokerage pointed out.
Financial factors are also said to play a role in the rise of home cancellations, with some buyers second-guessing their ability to afford a property while others are deciding the economy is too uncertain to make such a big purchase.
The ongoing war in Iran launched by the U.S. and Israel nearly six months ago has driven up consumer costs, with the average rate for a 30-year fixed-rate mortgage up to 6.67% as of last Thursday after falling below 6% in late February for the first time since 2022.
“Sometimes buyers get cold feet before the inspection — they revisit the numbers with their lender, get anxious about the payment and never even send the deposit,” Orlando real estate agent Juan Castro said in a Redfin post.
“Buyers know they have options right now, so they’re pushing harder in negotiations,” Castro said, citing instances where minor issues with a home are being leveraged for major concessions. “That can be tough for sellers, but it’s good news for buyers.”
Orlando ranked fifth among big cities nationwide for home sale cancellations, with 18.2% of deals falling through in July, according to Redfin. Atlanta had the most in the country, 19.8%, with Houston, San Antonio and Las Vegas rounding out the top five.
The analysis looked at the 50 largest U.S. metropolitan areas, a list that does not include any place in Utah.
What’s happening in Utah with home sales?
The Salt Lake Board of Realtors does not track cancellations but spokesman Dave Anderton said under-contract listings are down from a year ago, with 928 homes under contract in Salt Lake County as of July 31, compared to 1,048 at the same time last year.
The 11% drop year over year, he said, “reflects the affordability pressures buyers continue to face from elevated home prices and mortgage rates. Buyers are being more cautious and taking more time before making a decision.”
But Anderton said there’s an upside to the current market.
“The silver lining is that there are more homes to choose from and buyers have greater negotiating power than they’ve had in recent years,” he said. “Sellers are increasingly willing to negotiate on price, closing costs or other concessions, creating opportunities for buyers who are in a position to purchase.”