Hopeful Buyers Running Away From Their Home Purchase Deals? Why?

It’s no longer a seller’s market. Why, then, in most areas across the country, has home buyer demand wilted? Even when they do sign purchase agreements, many buyers are “ghosting” their sellers. Brokers, agents, and lenders are beginning to notice the trend.

New Redfin research finds 53,000 September 2025 purchase contracts were broken — by the buyers. That comes out to 15% of the total contracts. By comparison, barely more than 1% of buyers broke their purchase agreements in September 2024. In other words, this concerning buyer behavior has been building up for months.

To explore the trend, let’s do a Q&A.

Q. Where are these buyers backing out?

A. According to Redfin, Tampa’s cancellation rate is most striking, with one buyer in five deciding not to close. San Antonio comes in second, with 19% of buyers walking away from their contracts.

The trend is visible mostly in southern states. The Dallas–Fort Worth area as well as Orlando, Fort Lauderdale, and Jacksonville are all showing high cancel rates. Florida and Texas have both seen a lot of builder activity, giving buyers a heftier inventory and more options. “Buyers in these markets often face sticker shock when final payment estimates come in,” explained Realtor.com® analyst Hannah Jones, in Newsweek. “And with plenty of alternative listings available, some choose to walk away.”

Riverside, California is expressing a similar trend.

Financial worries weigh heavily on buyers, say market watchers at Realtor.com®. Areas where federal workers congregate, such as Washington, D.C., are dealing with a slowdown in the wake of 2025’s double whammy: federal layoffs, and then a government shutdown. Combine these setbacks with the seasonal lull, and here we are.

Q. How do property taxes, insurance, and mortgage interest factor in?

A. Rising tax bills bite into buyers’ ability to finance a home, and make a final loan approval harder to get. Sometimes, buyers can apply for discounts or rebates. Deed holders should check for any property tax breaks that might be available for the asking.

But there aren’t many breaks these days from home insurers. Consider homeowners in Florida. According to Bankrate data, a Florida deed holder will pay, on average, nearly $5,800 a year in home insurance premiums. Speaking of sticker shock!

At 6.2% in November 2025, the 30-year fixed-rate mortgage is lower than it was last November (when it was about 6.8%). But, according to the Mortgage Bankers Association, the flow of active loan applications has stalled. With home prices now averaging well over 400K, buyers are concerned about more than interest rates.

Q. And home prices still aren’t giving way? Why not?

A. A lot of places don’t have a great deal of new construction, and sellers in general are pulling back from the market. Low inventory supports demand — and high prices.

Home prices keep going up in three-fourths of cities and their suburbs, says the National Association of REALTORS®. Home buyers in Northeastern states are looking at 6% inflation since last year, and in the Midwest home prices are up 4% over last year.

Q. How are developers and lenders dealing with a stalled real estate market?

A. Builders are struggling to sell their new homes. The Wall Street Journal has covered Lennar’s big incentives to buyers. Also, D.R. Horton is offering buyers price discounts, accompanied by 3.99% mortgages.

Recent data from Realtor.com® indicates that the monthly mortgage payment for new construction hardly differs, at this point, from the cost of a lived-in home.

Other than builder incentives, what opportunities can buyers find? Those who can pick locations might look to the western and southern states, where prices are flatlining.

Q. How are the sellers reacting?

A. Those who don’t get the price they want can simply delist their properties. If they can manage waiting for a better time, that is. And quite a few can, according to Realtor.com®.

With neither sellers nor buyers keen to make concessions, more deals are just falling apart after the inspections.

One related statistic is encouraging for buyers, though. According to a Real Estate News article in November, the seller who delists a home typically leaves it on the market for 100 days before taking it off the market. Many of today’s sellers, especially those of retirement age, are still motivated to get to closing.

Q. Can sellers improve their chances of successfully closing?

A. The Wall Street Journal quotes Kelley Krock, who works as an agent in California. Krock suggests to sellers that they pay $1,200 or so to have a pre-inspection done in advance of any contractual agreements with buyers. This ratchets down the risk of surprises that can sour a buyer at the eleventh hour.

A second strategy is to accept a signed backup offer from another interested buyer if someone is waiting in the wings. This can help the first buyer stay focused, and allow for a new deal if the first falls through.

Q. Can buyers improve their chances of successfully closing?

It’s important to be prepared for mortgage approval snags and have a backup plan. Picking a good mortgage consultant can be key.

Financing contingencies in purchase contracts are important, too.

If there is a concern about job stability, mortgage approval, or anything else, a clause in the contract can ensure that the buyer recovers a good-faith deposit.

Those who back out of signed contracts can expect to lose the fees they’ve paid for professional services, like inspections and appraisals.

Q. Is there any flicker of light ahead in this tunnel?

A. It’s not unusual for real estate to slow down around the holidays. The economist Lisa Sturtevant at Bright MLS believes that lower mortgage rates will draw more buyers next year. As reported in Real Estate News, Sturtevant said:

The fundamentals of the U.S. housing market are still strong. But affordability challenges are going to characterize the housing market for years.

Last word: It isn’t a seller’s market any more…but that doesn’t make it a buyer’s market.

Hopeful buyers could well wonder why the headlines would call today’s real estate market buyer-friendly (except for a few pockets, like Texas). Sure, buyers aren’t feeling forced to rush or to waive contingencies now. But those factors, while helpful, don’t equate to purchasing power.

Sellers and buyers alike face difficulties right now. And the latest stats show one clear point. Sellers are having to cut some buyers some slack in order to get to the closing table.