Redfin Finds 1 in 7 Pending Home Sales Fell Through Last Month

(Chart courtesy of Redfin)

More than 57,000 home-sale agreements were canceled nationwide in June, equal to 14.9% of homes that went under contract that month, according to Redfin, Seattle.

Redfin noted the percentage is up from 13.9% a year earlier and represents 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,” the report said. “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 remain high. “Some would-be buyers are canceling purchases when the reality of their monthly payment sets in,” Redfin said. “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.”

Crystal Zschirnt, a Redfin real estate agent in Dallas, said buyers have leverage. “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 said it 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.