July Home Sale Cancellations Surge to Highest Level in Three Years
Redfin data show that 14% of U.S. home purchase contracts were cancelled in July, the highest rate since November 2023.
According to Redfin, 14% of residential purchase agreements were terminated in July, the strongest increase since November 2023 on a seasonally adjusted basis. The uptick reflects a buyer-driven market, where a near-record 51% excess of sellers over buyers gives purchasers leverage to back out over inspection issues, low appraisals, or unmet concessions. Elevated mortgage costs, with the 30-year fixed rate at 6.67%, and broader economic uncertainty are also prompting hesitation.
Orlando real-estate agent Juan Castro noted that buyers are re-examining loan numbers before deposits, while city-wide cancellation rates reached 18.2%; Atlanta topped the list at 19.8%, followed by Houston, San Antonio and Las Vegas. In Salt Lake County, the Salt Lake Board of Realtors said under-contract listings fell 11% year-over-year, citing affordability pressures but also noting more negotiating power for buyers. Overall, the trend signals a shift from the pandemic-era bidding wars to a market where buyers can demand greater concessions.
Why it matters
Rising contract cancellations signal tighter affordability and a shift toward a buyer-favored housing market.
In this story
