August 24, 2025

San Antonio Experiences Surge in Home Purchase Cancellations

News Summary

San Antonio is witnessing an increase in home purchase cancellations, leading the U.S. with a 22.7% rate. As buyers reconsider, properties are remaining on the market longer, with sellers adjusting prices to attract interest. The current economic climate is causing many potential buyers to hesitate, despite lower mortgage rates. As inventory levels rise, a shift towards a buyer’s market is evident as sellers face challenges in closing deals.

New York – The U.S. housing market is facing significant challenges as home sales fall through at record rates. A recent analysis from Redfin indicates that over 15% of home purchases were canceled in July, marking the highest rate for that month since 2017. Approximately 58,000 purchase agreements were recorded as canceled, representing about 15.3% of homes that went under contract in July.

This cancellation rate shows an increase from 14.5% in July of the previous year and 12% prior to the pandemic, revealing a shift in buyer sentiment amid rising prices and economic uncertainty. The states of Texas and Florida have reported the highest cancellation rates, with San Antonio leading at 22.7%. Other cities experiencing significant cancellation rates include Fort Lauderdale at 21.3%, Jacksonville at 19.9%, and Atlanta at 19.7%.

The data suggests a slowdown in the Sunbelt housing markets, where increased home construction has contributed to rising inventory levels. Homes are taking longer to sell, with the average time on the market reaching 43 days in July, the longest duration for any July since 2015. Some markets, such as West Palm Beach and Fort Lauderdale, are seeing homes remain on the market for over 90 days. In contrast, homes in 2022 averaged just 24 days on the market.

As inventory levels return to pre-pandemic status, buyers are gaining leverage in the market. Many sellers are making concessions to close deals. In June, over 25% of home sellers had to lower their asking prices, the highest rate recorded since at least 2018. On the other hand, some regions, such as Nassau County, New York (5.1%), Montgomery County, Pennsylvania (8.2%), and Milwaukee, Wisconsin (8.3%), report the lowest likelihood of purchase cancellations, suggesting a more stable market in those areas.

Despite a recent decline in mortgage rates from 6.75% to 6.58%, potential buyers remain hesitant due to ongoing economic uncertainty and rising costs of home insurance and property taxes. Analysts are suggesting that mortgage rates need to decrease further to encourage a rebound in buyer participation. Additionally, there has been a notable slowdown in newly constructed homes, with 66% of housing construction firms offering sales incentives—an unprecedented rate for the post-Covid period.

Current market trends reveal that over 30% of the largest U.S. markets have seen home prices drop by at least 1% from their recent highs. The median asking rent has also increased by 1.7% year-over-year in July, prompting some potential buyers to reconsider their decision to enter the home purchase market.

As the market evolves, sellers are advised to manage their expectations, as homes are taking increasingly longer to sell compared to the fast-paced market of previous years. The current landscape is characterized as a “buyer’s market,” with heavy inventory leading to declining prices in many areas.

The combination of rising cancellation rates, increased time on the market, and declining prices suggests a fundamental shift in the housing market dynamics. It remains unclear how long this trend will continue and what impact it will have on both buyers and sellers moving forward. As economic conditions fluctuate, experts emphasize the necessity for sustained changes in mortgage rates to potentially revitalize the housing market.

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Author: STAFF HERE GEORGETOWN

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