BiggerPockets Daily July Cancellations Hit an All-Time High
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Aug 21, 2025 Home purchase cancellations soared to an unprecedented 15.3% in July, signaling a significant shift in the market. High insurance costs and buyer uncertainty are leading potential homeowners in Texas and Florida to rethink their decisions. In San Antonio alone, nearly 25% of contracts fell through. The podcast dives into the disconnect between buyer expectations and seller pricing, further complicated by rising mortgage rates and varying inventory levels across the country.
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Record High July Cancellation Rate
- Nationwide, 15.3% of home deals fell through in July, the highest July rate Redfin has tracked.
- Rising affordability pressures and buyer cold feet are driving tens of thousands of collapsed transactions.
Affordability And Insurance Drive Cold Feet
- Affordability remains strained despite slight mortgage rate declines, raising monthly payment concerns for buyers.
- Economic uncertainty and higher insurance costs are adding to buyers' second thoughts and deal cancellations.
Move Quickly To Close Deals
- Get deals done quickly if you are selling to avoid competing with newer or cheaper listings.
- Expect turbulence in the contract phase and prioritize speed and clarity during negotiations.