BiggerPockets Daily 56,000 Home Deals Fell Through in April, Making the Highest Cancellation Rate Since 2020
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May 24, 2025 Home-purchase cancellations are hitting record highs, with over 14% of pending sales falling through. Factors like economic uncertainty, high mortgage rates, and an oversaturated market are causing buyers to walk away. The discussion highlights the metros most affected, especially in Florida and Texas, and how savvy investors can seize opportunities from these failed deals. Insights into the challenges facing specific markets, including details on condominiums in Florida, add depth to the conversation.
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Rising Home Purchase Cancellations
- Home purchase cancellations rose to 14.3% of pending sales in April 2025, the highest since 2020 pandemic shock.
- Economic uncertainty, buyer leverage in a buyer's market, and mortgage- and price-related "sticker shock" drive this trend.
Seller-Buyer Price Disconnect
- A $50,000 gap exists between sellers' listing prices and final sale prices, reflecting disconnect.
- This gap discourages buyers in the current buyer's market and fuels cancellations.
Investor Tips for Failed Deals
- Investors outbid on properties should offer backup bids through agents to stay in play.
- Properties returning to market after cancellations can be negotiated on price due to buyer perception of flaws.