According to a Redfin report and analysis by nowbam.com, escrow cancellations are rising, and rising fastest in Los Angeles.
Anecdotally as a real estate professional, I am seeing my residential buyers have more options than they ever had before in this market.
Yes, prices are still high, but now there are more homes on the market to choose from. Where a few years ago there may have been 100 buyers looking for 1 home, now there are 75 buyers looking at 10 homes. They can afford to be “pickier” aka focused on their vision while also being realistic about the costs of homeownership. With higher monthly payments, most buyers can’t afford to take on a big project while also paying top dollar. Something has to give, and if that means walking away from a deal, that is part of it!
I always advise sellers to be conservative with their sale estimates, and price on the lower end of comparable sales. I also prep sellers to be prepared to give some credit for repairs to keep a transaction alive. For buyers, know that now you have more leverage than before. For sellers, know that you can sell but you have to be realistic too.
So is this good news for YOU? It depends. But it’s definitely worth a call to see how this affects your buying or selling strategy over the next year. I’m always willing to listen and strategize with you!
Book time with me here: https://calendly.com/sammylyon/call
Home Sale Cancellations Hit a Record High for June
Sarah Lentz | Jul 24, 2025 | Housing Market
Key Details:
- Redfin report shows that 14.9% of pending home sales fell through in June 2025, the highest June rate on record since 2017.
- That’s more than 57,000 canceled contracts, up from 13.9% a year earlier.
- Sun Belt metros like Jacksonville (21.4%), Las Vegas, and Atlanta saw the highest fallout rates.
Nearly 15% of pending home sales fell apart last month. That’s the highest June fallout rate on record. And it’s another clear sign that buyers are gaining leverage.
A new Redfin report shows that 14.9% of home-purchase agreements were canceled in June, up from 13.9% a year ago. That adds up to more than 57,000 failed deals in a single month.
Redfin’s data goes back to 2017, and it shows that cancellations usually dip in the spring, not climb. What we’re seeing now is a market where buyers feel confident walking away.
Where Cancellations Are Rising Fastest
Most metros saw an increase in contract cancellations compared to last year. The biggest year-over-year jumps were in California:
- Anaheim – 15.2% (up from 12.6%)
- Los Angeles – 17.1% (up from 14.7%)
Why Deals Are Falling Apart
According to Redfin’s analysts, today’s cancellation rate is being driven by two main factors: buyer leverage and financial pressure.
Buyers are walking away because:
- They have more options. With hundreds of thousands more sellers than buyers, many markets have tilted in the buyer’s favor. Some are backing out during the inspection period when a better home hits the market or when they find a flaw they don’t want to fix.
- They’re feeling the financial strain. Even with a slight dip in mortgage payments, costs remain near all-time highs. Many buyers don’t realize what they’ve signed up for until that payment estimate becomes real.
- They’re nervous about the economy. Uncertainty around inflation, tariffs, and the potential for a recession is shaking buyer confidence, even among those who can afford to buy.