Buyer Cancellations SPIKE As Housing Market SHIFTS

Focus Keyphrase: buyer cancellations housing market

The Housing Market Is Changing—Here’s What You Need to Know

We’re seeing the highest rate of buyer cancellations in over a decade —and it’s causing ripples across the U.S. housing market.

Some homes are sitting longer than they have in years, while others are still selling with multiple offers over asking.

What’s driving this split? And more importantly— what does it mean for you if you’re planning to buy or sell in the next 6–12 months?

💡 Want to get pre-approved or connect with a vetted real estate professional anywhere in the U.S.? Start here → jebsmith.net/start

📈 Buyer Cancellations Hit Record Highs

Nationally, 15% of home purchase contracts are falling through —the highest level since at least 2017.

Why This Matters:

• Homes are sitting longer, leading to price reductions.
• Buyer showings are down in many markets due to affordability challenges.
• Sellers are needing to adapt pricing strategies and offer concessions to stay competitive.

Yet, some properties are still getting multiple offers over asking —even in the same city.

Key takeaway: Not all markets—or properties—are behaving the same. Real estate remains hyper-local.

🏠 The Buyer Side: Leverage Is Back

For the first time since the pandemic, buyers have more negotiating power:

• Seller-paid repairs
• Interest rate buydowns
• Price reductions—even after going under contract

Why Buyers Are Walking Away More Often:

1. Increased Inventory → More options to choose from.
2. Cautious Mindset → Buyers don’t feel pressured to “grab the first thing they see.”
3. Inspection Sensitivity → Cosmetic issues that used to be ignored can now kill deals.

Example: A buyer canceled at the last minute over a combination of inspection findings, a lis pendens (which could have been cleared), and the fact that someone had died in the property years ago.

🌍 Where Cancellations Are Highest

• Jacksonville, FL – 20%+
• Las Vegas, NV – 20%
• Atlanta, GA – 20%
• Orlando, FL – 20%
• Phoenix, AZ – 20%

These regions saw rapid appreciation during the pandemic and are now adjusting faster.

🔍 A Real-Life Example of a Deal Gone Sideways

In Huntington Beach, a listing started with multiple offers at $1.39M.

• Buyer #1 canceled over inspection concerns.
• Seller had to disclose that inspection to future buyers, scaring some off.
• Price was reduced twice before finally selling—after three separate contracts.

Lesson: Even well-marketed, well-priced homes can face turbulence in today’s market.

😬 Seller Panic Is Setting In

When homes don’t sell in days or weeks, sellers get nervous —especially those used to the lightning-fast pandemic market.

Agents are also under pressure: many newer agents have never worked in a market where:

• Price reductions are normal
• Negotiations take weeks
• Homes take months to sell

The sellers most likely to make deals right now:

• Have owned their homes for 3+ years
• Have substantial equity
• Are motivated to move

🛠️ Are You Overpriced, or Is It Something Else?

If your home is on the market:

1. No showings? → Likely overpriced.
2. Showings but no offers? → Property condition or presentation may be the issue.
3. Offers well below asking? → Market is signaling your true value.

Pro tip: Your first 1–2 offers are often your best. Waiting can hurt perception.

📊 Prices Aren’t Crashing—They’re Normalizing

National home prices are still up ~2% year-over-year.

• 1 in 3 markets is seeing mild declines.
• Florida and Texas have pockets with 8–10% drops from 2022 highs.
• The steepest declines are in areas with rapid pandemic appreciation, insurance challenges, or affordability barriers.

⏳ Welcome Back to a Traditional Market

A “normal” market means:

• Homes take weeks or months to sell.
• Price reductions are common.
• Negotiations are expected.
• Bidding wars are the exception, not the rule.

📉 Will Lower Rates Change Things?

Slightly lower rates could:

• Bring more buyers back
• Encourage more sellers to list

But it’s unlikely to cause a big price surge. Expect modest growth—near the rate of inflation.

🤝 Advice for Buyers

• Use your leverage, but don’t overplay your hand.
• Present clean, strong offers with proof of funds and pre-approval.
• Target motivated sellers and properties with longer days on market.

📣 Advice for Sellers

• Be flexible and realistic about pricing.
• Understand that longer marketing times are normal.
• Work with an agent experienced in navigating a shifting market.

💡 Final Word

The market isn’t broken—it’s adjusting.

• If you’re buying → Be strategic and patient.
• If you’re selling → Stay flexible and informed.

Avoid fear-based headlines and work with professionals who understand today’s trends.

📍 Ready to Move Forward?

Whether you need a mortgage pre-approval or want to connect with a pre-vetted real estate professional anywhere in the U.S., start here:

👉 jebsmith.net/start