Why 1 in 7 Home Purchase Agreements Are Falling Through in 2025

Approximately 14.3% of U.S. home-purchase agreements were canceled in April 2025, meaning one in seven pending sales fell through. This marks the highest cancellation rate for the month of April since 2017, excluding the initial pandemic shutdown in 2020. The trend is particularly pronounced in specific markets, with Florida metros dominating the list of highest cancellation rates. For home buyers and sellers, understanding the reasons behind this trend—from economic jitters to increased negotiating power—is critical for navigating today's shifting real estate landscape.

What Is Causing the High Rate of Cancelled Home Sales?

A confluence of factors is giving home buyers cold feet at the eleventh hour. Based on an analysis of Multiple Listing Service (MLS) data—a database used by real estate professionals to list properties for sale—three primary reasons are driving the increase in cancellations.

• Economic Uncertainty: Broader economic concerns, including fears about tariffs, layoffs, and federal policy changes, are causing some buyers to reconsider major financial decisions. A recent industry survey indicated that nearly a quarter of Americans are postponing large purchases due to economic volatility.
• Increased Housing Inventory: With the supply of homes for sale at a five-year high, buyers have more options. This shift towards a buyer's market—a market condition where supply exceeds demand, giving buyers an advantage—means some buyers back out of a deal if they believe a better property might become available.
• High Housing Costs: Mortgage rates—the interest charged on a loan used to purchase a property—averaged 6.73% in April, more than double the record lows seen during the pandemic. Coupled with persistently high home prices, this sticker shock is causing some buyers to cancel agreements after realizing the full long-term financial commitment.

Which U.S. Metros Have the Highest Cancellation Rates?

The rate of deal cancellations is not uniform across the country. The following table highlights the ten major metropolitan areas with the highest percentage of pending sales that fell through in April 2025.

Florida accounts for five of the top ten metros, a trend attributed to the state's significant new home construction, which provides buyers with ample alternatives. Additionally, concerns over rising insurance costs and natural disasters are contributing factors in Florida. Texas, another state with high construction rates, has two metros in the top ten.

How Can Buyers Use Cancellations to Their Advantage?

For persistent buyers, a canceled deal can present a unique opportunity. When a home purchase agreement falls through, the property often returns to the market quickly.

• The Backup Offer Strategy: If you were outbid on a home, your real estate agent can contact the listing agent to see if the seller is accepting backup offers. This means your offer would be next in line if the primary deal collapses. This tactic can allow you to secure a home before it is officially relisted.
• Negotiating Power: A home重新上市 after a failed deal can sometimes create the perception of an issue, even if none exists. This can give a new buyer leverage to negotiate on the purchase price or request concessions, such as help with closing costs—the fees and expenses paid to finalize a real estate transaction.

For buyers, the current environment means being prepared to act quickly on backup opportunities and understanding that you may have more room to negotiate than in recent years. For sellers, it underscores the importance of pricing your home competitively and being prepared for potential bumps during the closing process. The key takeaway is that the market is shifting, and flexibility is becoming an increasingly valuable asset for all parties involved.