Buyers will wield more power, especially in the Sunbelt housing market, contract cancellations are increasing.
The surge in homesell cancellations is a balanced balance of the housing market from sellers to buyers. In June 2025, almost 15% of pending home sales collapsed. All Redfinrecord highs in June, dating back to 2017. Contract cancellations have been concentrated in Sunbelt states like Florida and Texas since the pandemic housing boom. The outcome of contract cancellations extends beyond individual buyers and sellers to builders, agents and the broader economy.
Over 57,000 home purchase agreements have been cancelled in June, Redfin discovered. This is almost 15% of the homes that signed a contract that month. This cancellation rate has risen from 13.9% in June last year. This trend is evident nationwide, but especially in the Sunbelt cities, including Jacksonville, Florida, Las Vegas and Atlanta.. High interest rates, high insurance costs and high property taxes also affect cancellation rates. According to cotality (Formerly CoreLogic).
Buyer market or something else?
Several factors that support buyers have been improved. Stock is up –Zillow finds 1.36 million homes in the market In June, the most demand has softened since the second half of 2019.. With more options and less competition, buyers can afford to be more selective. Zillow Find a share of price-cutting listings that reached 26.6% in June, the highest monthly mark in Zillow records dating back to 2018, and close to the all-time high of 27% since September 2022.
Sellers have also started to schemize the property From markets that don’t sell at prices, they think it’s worth it. According to Realtor.com, it was registered in June, with a 47% increase from the previous year.
“What we see nationwide is a market that is gradually rebalancing, with buyers gaining leverage and sellers facing trade-offs. Realtor.com Senior economist Jake Crimel previously said luck. “Many sellers still don’t have a price for sale.”
Another difference from the pandemic purchase terms is that fewer buyers abandon the contingencies of testing and ratings. Now they are being used as an opportunity to renegotiate or leave if (and when) issues arise.
But that’s not a full-fledged buyer market, but it’s because many homeowners have twice thought about it over the wider economy. Several factors contribute to financial insecurity. The mortgage rate stubbornly remains at 6.8%, keeping monthly payments near historic peaks, median national selling prices still remains record highs, and buyer confidence is challenged by macro uncertainty related to tariffs, inflation and potential recession. In fact, recent Legal Shield investigation 70% of homeowners and future buyers are worried about a possible recession, indicating that tariffs could disrupt housing plans.
Many people discover that once fully calculated, monthly payments are too much to endure and return to the last moment. Others want to drop the price or rate immediately and choose to wait for it. For the first time in years, real estate agents report that buyers are negotiating more vigorously. Sellers want to make concessions, from lowering prices to agreeing to costly repairs. This changing balance allows for more room for shopping and less incentive to stick to a deal if it’s not perfect.
Florida and Texas headwinds
Florida and Texas are often home sales leaders over the past five years, but are now leading cancellation rates. Several local factors are active from the influx of newly built homes that increase availability The rising insurance premiums,especially Disaster-prone areas. These are generally drugs in the housing market and are involved in cancelling as some potential buyers have abandoned the transaction after receiving the quote..
Crossing the Sunbelt, stock tilts the arena.. In certain cities, the supply of homes (inventory to sales ratio) for several months swelled to 9-12 months, far above the 6-month threshold for a balanced market..
In Florida Maximum number of houses for sale As of June 2025, active listings have skyrocketed in the US, posted by Central Florida The highest housing stock level in 15 years. There is this We have pushed down median home prices In some markets, it is about 2%-3% more dramatically compared to 2024. Sarasota, etc.. The national housing market may not be in the buyers’ market itself, but it’s a Florida vibe, with many sellers competing for a smaller pool of buyers offering price cuts or concessions. In Texas, there is an active list To hit record highs In some markets, such as Houston, median prices have also declined slightly, similar to Florida.
As of June 2025, both the Florida and Texas housing markets face headwinds marked by rising inventory, price hikes, long timelines of sales and shifts in leverage to buyers. This softening trend is evident across the Sunbelt, reflecting a shift from the market during a crazy pandemic era.
The road ahead
Florida, Texas, and the wider Sunbelt market are all fighting for oversupply, softer pricing and a shift towards a buyer-friendly situation. After years of strong profits, 2025 has resulted in a market reset driven by cooling movement, higher rates and the prolonged impact of overbuilding in the pandemic era. In these regions, buyers now have more choice and negotiation power, while sellers face increased competition and reduced price growth.
“The house has been on the market for nearly three weeks since last year,” says Krimmel of Realtor.com. “It’s a sign of sellers still pinned at pandemic-era prices, despite the markets telling them otherwise.”
Market watchers don’t expect an easy reversal. Prices are forecast to fall slightly by the end of 2025, but mortgage rates are forecast to be nearly stable. For now, home sale cancellations are likely to continue to rise, and all market participants need to adapt to times of higher uncertainty.
For this story, luck Generated AI was used to assist with initial drafts. The editors checked the accuracy of the information prior to publication.