Why More Homebuyers Are Walking Away in 2025

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According to a recent Redfin analysis, roughly 56,000 U.S. home-purchase agreements were canceled in August 2025, representing 15.1% of homes that went under contract that month. This marks the highest August cancellation rate since Redfin began tracking this data in 2017.

As a realtor, I see firsthand how emotional and complex the homebuying process can be. Many buyers experience hesitation when faced with inspection surprises, financial shifts, or uncertainty about selling their current home. Redfin’s findings reveal that more transactions are falling apart simply because buyers and sellers aren’t aligning on expectations or compromises.

Why Buyers Are Backing Out

Today’s homebuyers are approaching the market with caution. High mortgage rates, rising home prices, and ongoing economic uncertainty have made buyers more selective and more willing to negotiate—or walk away entirely.

Redfin’s data shows that many buyers are requesting additional repairs, price reductions, and other concessions to offset the high cost of ownership. Meanwhile, some sellers are still adjusting from the pandemic boom years when homes sold instantly and often above asking price. This disconnect often leads to canceled deals when one side refuses to budge.

Inspection Issues Lead the List

Redfin surveyed more than 400 of its agents and found that over 70% of canceled deals were due to home inspection or repair issues. This trend marks a dramatic shift from the pandemic era, when buyers waived nearly every contingency to win competitive bidding wars.

Now, buyers are using inspections to their advantage—leveraging findings to negotiate lower prices, request repairs, or simply walk away if conditions don’t feel right. As someone working daily in the Orange County market, I’ve seen similar patterns locally, particularly when homes haven’t been well-maintained or priced for current conditions.

Seller and Buyer Tips to Keep Deals Together

For sellers:

• Consider a pre-inspection so potential buyers understand a home’s condition upfront.
• Stay flexible on price and repairs; today’s market rewards transparency and adaptability.
• If possible, shorten the inspection window and request a fair earnest money deposit to show buyer commitment.

For buyers:

• Get fully pre-approved for financing before making an offer.
• Tour homes more than once and make sure you truly love a property before committing.
• Understand that no inspection is perfect—issues are normal and manageable.
• Research HOA dues, insurance rates, and previous inspection reports to avoid surprises.

These steps help reduce stress and improve the likelihood of a successful closing.

Regional Trends and Local Takeaways

Redfin’s metro-level data shows that markets like Atlanta, Jacksonville, and Orlando saw some of the highest cancellation rates in August, while areas such as San Francisco and San Jose had the lowest. Interestingly, Southern California markets—including Anaheim, where cancellations fell from 14.9% to 13.6%—appear to be stabilizing.

Here in Orange County, I’m noticing a similar balance. Buyers remain cautious but ready to act when they see quality homes priced realistically. Sellers who invest in pre-listing preparation and stay flexible are far more likely to close successfully.

Bottomline

While home-purchase cancellations are making headlines, the underlying message is clear: buyers and sellers need to meet each other halfway. Preparation, transparency, and realistic expectations can turn potential pitfalls into win-win outcomes.

At Whitestone Real Estate, I help clients navigate every stage of the process with strategy and confidence. If you’re thinking about buying or selling a home in Orange County, let’s connect. Together, we can make your next move a successful one.

Reference: Katz, L. (2025, October 7). Homebuyers are canceling deals at a record rate. Here’s why. Redfin.