Nov 10, 2025 - Business
Why more homebuyers are backing out
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More U.S. homebuying contracts are being canceled, according to a Redfin report.
The big picture: Homebuyers are backing out of deals at "a fairly high rate" as their negotiating power grows and economic uncertainty mounts, among other reasons.
- "In a market where home prices and mortgage rates are high and competition is low, buyers want the home they buy to be perfect," researchers wrote in the report.
- Meanwhile, some sellers aren't willing to budge on price or repairs.
By the numbers: Fully 15% of pending U.S. home sales fell through in September, up from 13.6% a year ago, per the real estate site.
Between the lines: Cancellations are typically more common near the end of the year and less common in the spring.
- Homes that fell through during a given month didn't necessarily go under contract that same month.
What we're watching: Deals are increasingly collapsing across the Sun Belt, where homes aren't as affordable as they once were.
- Rising insurance costs, HOA fees and climate risks have also discouraged shoppers, the researchers note.
- Others walk away because they're confident they'll find something else, especially in states with more newly built housing.
