HOUSTON — (By Dale M. King, Realty News Report) – The real estate market remains bedeviled by affordability pains, elevated mortgage rates and economic jitters that keep potential home purchasers waiting restlessly for a break in the logjam.
It’s not for lack of trying. A new report from Seattle-based brokerage Redfin says 15% of dwelling seekers who took the bold step of contracting to buy a home in September got cold feet before the deal was consummated and pulled out of the transaction.
The report says the 15% figure translates to just over 53,000 home-purchase agreements nationwide that were rescinded in September. That’s an increase from the 13.6% of home purchases that tanked the previous September.
“I’m seeing a lot of buyer’s remorse,” said Jo Chavez, a Redfin agent in Kansas City, Mo. “Buyers make an offer, then they start worrying they could have found a better deal or a better home because there are more home sellers than buyers in the market. Some other buyers are backing out because they’re concerned about job security.”
Potential home buyers are deserting sellers at various rates in different parts of the country, mainly Florida and Texas, says Redfin. Tampa reported September’s highest cancellation rate, 20.1% of home-purchase agreements, up from 17.7% a year earlier.
Next was San Antonio, where 19% of deals got tossed, up from 16.8% year-over-year.
Others in the top 10 are:
3 – Atlanta, 19.0%, up from 16.5% year over year.
4 – Orlando, 18.7%, up from 17.5% y-o-y.
5 – Fort Worth, 18.7%, up from 16.6% y-o-y.
6 – Riverside, Calif., 17.9%, up from 17.4% y-o-y.
7 – Fort Lauderdale, 17.9%, up from 17.8% y-o-y.
8 – Jacksonville, 17.8%, up from 18.2% y-o-y.
9 – Dallas, 17.7%, up from 16.4% y-o-y.
10- Las Vegas, 17.7%, up from 15.9% y-o-y.
Overall, contract terminations rose in 44 of the 50 most populous U.S. metros, says the brokerage’s analysis.
Unwilling to compromise
Redfin says people who initially made good-faith efforts to shake hands in agreement with sellers turned their backs at a fairly high rate nationwide, mainly because each party had different expectations for the deal and weren’t willing to compromise. That’s especially true when it comes to concessions and repairs.
In a market where home prices and mortgage rates are high and competition is low, buyers want the home they invest their hard-earned cash in to be perfect. Meanwhile, sellers want to get the price they have in mind and not lose money on the deal.
Some sellers who bought during the pandemic may also need to sell their home for a specific price to avoid taking a loss, and are unwilling to bargain.
When both sides fail to compromise, home-purchase agreement efforts often break down before closing, typically during the inspection period. Redfin agents said more than 70% of the deals that fall through do so during the inspection cycle.
Sun Belt takes a hit
Buyers are retreating from the Sun Belt because many Dixie metros are less appealing than they once were, says Redfin. The South became a hot migration spot in 2021 and 2022 for its relative affordability and warm weather, with cities like Tampa and Las Vegas leading the charge. But that boom sent prices soaring.
Now, when paired with growing climate risks, extreme HOA fees and high insurance premiums, more would-be buyers who once fancied southern climes are holding off altogether. Sun Belt states are also building more homes than anywhere in the U.S., prompting buyers to back away, confident they’ll be able to find something else. Economic uncertainty also impacts the decision-making process.
NY and West Coast calling
San Francisco, Nassau County, N.Y, and San Jose had the lowest shares of contract cancelations in September – all under 7%. Other expensive cities, including Seattle, New York and Boston, are also among the top 10 metros where snuffed-out deals are more rare.
Many other regions with low shares of canceled contracts are fairly affordable – including Milwaukee, Montgomery County, Penn. and Minneapolis. Limited inventory there makes buyers more willing to move forward once they’ve made an offer because they don’t have many other choices.
Even though deals in these 10 metros generally close successfully, cancelation hikes have been noted during the past year, led by San Jose (+4.2%). Nashville (+4%), Warren, Mich. (+3.5%), Virginia Beach (+3.4%) and Oakland (+3.2%).
Buyers are choosier
It’s a buyer’s market in most of the U.S., says Redfin, so those who are still searching for a home know they have leverage. It’s common to be choosier and ask for repairs, price reductions and other concessions. When sellers push back, or when inspections reveal new issues, many buyers walk away. A lot of would-be buyers are also eyeing homes at lower price points, which are more likely to have inspection issues.
It’s worth noting that today’s slow market—along with the uptick in canceled deals—is causing some would-be sellers to hold off on listing their homes altogether.
Oct. 30, 2025 Realty News Report Copyright 2025
Photo: Realty News Report, Copyright 2025
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