🏡 Homebuyers Are Canceling Deals at Record Levels — Here’s What’s Behind It

Home-Purchase Cancellations Reach Record Levels

A growing number of homebuyers across the U.S. are walking away from deals. According to a new Redfin report, 56,000 pending home sales were canceled in August 2025, representing 15.1% of all contracts — the highest rate for any August on record.

That’s an increase from 14.3% a year earlier, showing how shifting interest rates, inspection issues, and buyer caution are reshaping today’s real estate market.
(Source: Redfin News, September 2025)

Why Are So Many Buyers Backing Out?

In a survey of more than 440 Redfin agents, the top cause for canceled deals was inspection or repair problems, followed by financing issues and buyers unable to sell their current homes.

(Data Source: Redfin News — Home Purchase Cancellations, August 2025)

Even when sellers agree to make repairs, many buyers are still choosing to back out — often due to concerns about unexpected costs or a hesitant economic outlook.

Condos in particular are facing higher cancellation rates due to HOA fees, assessments, and stricter loan conditions.

Metro Areas With the Highest Cancellation Rates

Several major metros — particularly in the South and Sun Belt regions — saw above-average cancellation rates:

• Atlanta, GA: 21%

• Jacksonville, FL: 20.5%

• Orlando, FL: 20.2%

• San Antonio, TX: 19.3%

• Houston, TX: 19.2%

• Austin, TX: 15.5% (up from 12.1% last year)

By contrast, Portland, Miami, and Denver recorded lower cancellation rates compared to 2024.

(Source: Redfin Report — August 2025)

What Buyers and Sellers Can Learn

For Buyers

• Get pre-approved early. It strengthens your offer and reduces the risk of financing issues.

• Prepare for inspection findings. Keep a repair or credit budget in mind.

• Review HOA documents carefully. Especially when purchasing condos.

• Stay patient. Don’t move forward unless you feel confident in the property’s condition and price.

For Sellers

• Conduct a pre-listing inspection. This helps uncover potential deal-breakers early.

• Be flexible on negotiations. Offering repair credits or minor fixes can prevent cancellations.

• Set realistic expectations. Price your home competitively to attract serious buyers.

• Keep backup offers handy. If one deal falls through, another buyer may be ready.

The Bigger Picture

This surge in cancellations signals a more cautious and buyer-driven market. Even though higher mortgage rates and repair concerns are creating hesitation, real estate activity remains steady — particularly in Central Texas, where demand continues to balance with growing inventory.

Final Thoughts

The message from Redfin’s August 2025 data is clear: uncertainty breeds caution, but opportunities remain strong for those who plan carefully and act strategically.

If you’re thinking about buying or selling a home in Austin, San Antonio, or surrounding Central Texas areas, our team at Taylor Realty Group is here to guide you through the process and help you make informed decisions in today’s shifting market.

📞 Connect with Taylor Realty Group today to discuss your next move confidently.

✅ Source:
All data and statistics are referenced from Redfin’s Home-Purchase Cancellations Report – August 2025.