Housing Market Red Flag: Why Are Home Sale Cancellations Increasing in 2025?
The U.S. housing market is sending mixed signals in 2025. While some metrics show resilience, a worrying trend has emerged: more home sale cancellations are happening across the country. In May alone, nearly 6% of pending contracts fell through, according to the NAR home sales report. That’s up from 5% a year earlier. And data from Redfin housing data shows an even sharper picture: 14.6% of pending sales were canceled, the highest May rate since at least 2017.
So what’s behind the spike? And what does this mean for South Florida buyers and sellers?
What’s Causing the Spike in Home Sale Cancellations This Year?
Several factors are putting pressure on housing deals in 2025:
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Stock Market Fluctuations and Economic Worries
Volatility…
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