Would-be homebuyers are getting cold feet and backing out of deals at a record pace as some sellers have a 'hard time adjusting' to new reality | Fortune

"It's a buyer's market, and that means house hunters are walking away from contracts more frequently, according to data from Redfin. Sellers outnumber buyers in the housing market by about 500,000, the real-estate firm said, as it found that buyers are wielding more negotiating leverage and asking sellers to cover the cost of any repairs that need to be done and demanding price cuts."

"About 56,000 U.S. purchase agreements were canceled in August, representing 15.1% of homes that went under contract. That's the highest share for August deals falling through in records dating back to 2017. It's also up from 14.3% in August 2024 and well above the post-pandemic housing frenzy's rate of 11.4% in August 2021. "Home purchases are falling through more frequently because buyers and sellers oftentimes aren't on the same page and aren't willing to compromise," Redfin said in its report."

"In a survey of Redfin's real estate agents, 70.4% said home inspection or repair issues were the cause of canceled contracts-by far the top reason. That was followed by 27.8% who said buyer financing fell through, 21% who said buyers were unable to sell their current homes, 14.9% who cited changes in a buyer's financial situation, and 12.9% who said a buyer had found another house they preferred."

Sellers outnumber buyers by about 500,000, creating a buyer's market where buyers press sellers to cover repairs and accept price cuts. About 56,000 U.S. purchase agreements were canceled in August, 15.1% of contracts—the highest August share since 2017 and up from 14.3% in August 2024 and 11.4% in August 2021. Agents reported inspection or repair issues caused 70.4% of cancellations; other causes include financing failures (27.8%), inability to sell current homes (21%), changes in buyer finances (14.9%), and buyers finding another home (12.9%). Cancellations concentrate in Florida and Texas amid rising supply, while many sellers still expect pandemic-era prices and resist concessions.

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