October Sees Uptick in Home-Sale Cancellations

While home sales activity was stronger in October, the month also saw an increase in cancellations. According to a report from real estate marketing platform Redfin, there were approximately 53,000 home-purchase agreements canceled in October, or about 15.1% of all homes that went under contract during the month. Comparatively, in October 2024, 14.3% of deals fell through.

Several factors are to blame for this increase, according to the report. High housing costs are a main driver behind the uptick in cancellations. Another reason could be the fact that buyers have so many options to choose from, giving them more flexibility to negotiate or back out of a deal altogether.

“Buyers know they have options, so if a seller isn’t willing to address a maintenance issue, the buyer will walk away,” said Tracy Edwards, a Redfin Premier real estate agent in Winston-Salem, NC. “A lot of sellers are having to adjust their expectations—some still think their home is worth more than the market will bear.”