U.S. Home-Purchase Cancellations Hit a Three-Year High of 14% in July

U.S. home-purchase contract cancellations reached 14% in July, marking the highest cancellation rate since November 2023, according to a recent report from Redfin.
The surge in canceled deals is reportedly shifting leverage toward homebuyers. Homes returning to the market often face less competition, pushing motivated sellers to be more flexible.
As a result, buyers are increasingly using this dynamic to negotiate more favorable terms, including lower purchase prices, seller-covered closing costs, mortgage-rate buydowns, and repair credits.