Redfin: Home Purchase Cancellations Jump in July

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Redfin, Seattle, reported 58,000 home-purchase agreements were canceled in July, roughly 15.3% of homes that went under contract. That’s the highest July rate for cancellations in records going back to 2017.

For the past few years, cancellations for July have hovered below 15%–at 14.5% in 2024, 14.5% in 2023 and 14.3% in 2022. Before that, they were even lower, at 11.6% in both July 2021 and 2020.

Redfin noted that homes that fall out of contract during a given month didn’t necessarily go under contract that month.

In terms of spots where the most sales are falling through, San Antonio is at the top of the list. In July, 730 home-purchase agreements were cancelled, equal to 22.7% of homes that went under contract there.

Next was Fort Lauderdale, Fla., at 21.3%, Jacksonville, Fla., at 19.9%, Atlanta, at 19.7% and Tampa, Fla., at 19.5%.

Florida and Texas have both been seeing significant construction in the past few years–buyers may be backing out because they are confident in their ability to find another home, Redfin noted. The report also pointed to insurance price and HOA fee increases in Florida.

Areas with the fewest sales falling through included Nassau County, N.Y., (5.1%), Montgomery County, Pa., (8.2%), Milwaukee (8.3%), New York (9.5%) and Seattle (10.2%).