Redfin Reports Highest June Home Sale Cancellation Rate on Record

In June 2025, 1 in 7 pending home sales fell through, the highest June level on record. The rate of cancellations increased to 14.9% from 13.9% a year earlier, mainly due to a buyer's market with more options and negotiating power. Finances were also a major reason for cancellations, as buyers discovered issues or were nervous about economic uncertainty. Some sellers were willing to make deals to keep transactions from falling apart.

In June 2025, a record high of 1 in 7 pending home sales fell through, marking the highest June level on record. According to a new report from Redfin, the real estate brokerage powered by Rocket, 57,000 home-sale agreements nationwide were canceled, equating to 14.9% of homes that went under contract that month. This represents a significant increase from the 13.9% cancellation rate in June 2024 [1].

The surge in cancellations is largely attributed to a buyer's market, where buyers have more options and negotiating power. With hundreds of thousands more U.S. home sellers than buyers, buyers are able to be more selective and may back out during the inspection period if a better home comes up for sale or if they discover an issue they don't want to fix. Additionally, financial concerns are a major factor, as home-sale prices are at record highs and monthly mortgage payments, while slightly lower, remain near their all-time highs. Some buyers are canceling purchases when the reality of their monthly payments sets in, while others are nervous about economic uncertainty surrounding tariffs, inflation, and the possibility of a recession [2].

Crystal Zschirnt, a Redfin Premier agent in Dallas, noted, "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 expects home prices to decline 1% year over year nationwide by the end of 2025, with mortgage rates remaining essentially unchanged in the 6.8% range [1].

In some cases, sellers are working hard to keep transactions from falling apart. Van Welborn, a Redfin Premier agent in Phoenix, stated, "Sellers are willing to make deals because in today’s buyer’s market, they don’t want to lose out on a sale once they have a buyer under contract. A few years ago, when the market was more competitive, sellers were able to tell buyers to move on rather than pay for repairs found during the inspection period. Now, sellers are doing whatever they can to close the deal. I have one buyer who discovered a septic issue on an ultra-luxury home and was able to talk the seller into reducing the price by $1 million" [2].

Sun Belt metros had the highest cancellation rates, with Jacksonville, FL, leading the way at 21.4%. Las Vegas and Atlanta followed with rates of 19.7% and 19.6%, respectively. These high rates are partly due to the abundance of new construction, providing buyers with more inventory to choose from. Some buyers in these areas are backing out due to sky-high insurance quotes related to the increasing frequency of natural disasters [1].

On the other end of the spectrum, Nassau County, NY, had the lowest cancellation rate at 5.4%. Montgomery County, PA, and Milwaukee followed with rates of 6.8% and 8.2%, respectively [1].

The biggest year-over-year increases in contract cancellations were in California, with Anaheim and Los Angeles seeing increases of 15.2% and 17.1%, respectively. The share of home-purchase cancellations fell year over year in just seven of the metros in this analysis, all by about 1 percentage point or less [1].

For more detailed information, including charts and full metro-level data, visit [Redfin's report on pending sales fall-through in June 2025](https://www.redfin.com/news/pending-sales-fall-through-june-2025).

References:
[1] https://www.stocktitan.net/news/RKT/redfin-reports-1-in-7-pending-home-sales-fell-through-last-month-the-4x4d6tki12vs.html
[2] https://www.businesswire.com/news/home/20250721011503/en/Redfin-Reports-1-in-7-Pending-Home-Sales-Fell-Through-Last-Month-The-Highest-June-Level-on-Record