In June 2025, something big happened in the U.S. housing market — more homes under contract were canceled than ever before for the month of June. That means buyers changed their minds after agreeing to buy a home, and sellers were left scrambling.
According to new data from Redfin, over 57,000 home sales fell through last month, which equals about 15% of all homes that were under contract. That’s the highest rate ever recorded for June. A year ago, it was just 14%, but this small shift points to something bigger.
Let’s break down what’s going on — and what it means if you’re thinking about selling your home.
Why Are So Many Home Sales Falling Apart?
Real estate experts say it all comes down to buyer uncertainty.
Right now, many buyers are nervous about:
- High mortgage rates (around 6.8%)
- Rising inflation
- Talk of a possible recession
- Tariffs and changing economic policies
- Soaring home prices
Even though there are more homes on the market, buyers are pulling back. Some are canceling deals because they’ve found another home they like better. Others are walking away because they’re afraid repairs could cost too much — or they’re just hoping prices will drop soon.
More Homes for Sale = Less Seller Power
Redfin and Realtor.com both reported that housing inventory is up nearly 30% compared to last year, and it’s been climbing for 20 months straight. That gives buyers more choices — and more reasons to back out if something doesn’t feel right.
This rising inventory means sellers don’t have the same power they did in past years. In fact, Redfin says there’s now a “buyer surplus” of nearly 500,000 homes, the biggest gap between buyers and sellers since 2013.
Home Sales and Prices — What the Numbers Say
It’s not just canceled sales that are rising. According to the National Association of Realtors:
- Home sales dropped 2.7% in June
- That brings us to a nine-month low of 3.9 million sales
- Meanwhile, the median home price hit $435,300, the highest ever for June
So even though there are more homes available, buyers still feel stuck. High prices and mortgage rates are making it hard to move forward.
What Experts (and Politicians) Are Saying
President Trump recently blamed Federal Reserve Chair Jerome Powell for weak home sales, saying, “People aren’t able to buy a house because this guy is a numbskull… He keeps the rates too high.”
Meanwhile, Dallas agent Crystal Zschirnt says buyers have the upper hand:
“Some buyers are canceling deals because a better home pops up in the same price range… or they’re hoping prices or rates will drop soon, even though that’s unlikely.”
Oxford Economics’ lead economist Nancy Vanden Houten believes things won’t get worse, but they won’t improve much either — at least not this year.
“We think price growth will slow down and sales will stay flat for the rest of 2025. Real improvement may come in 2026, when the Fed starts cutting rates more seriously.
What’s Coming Next?
Redfin predicts:
- Home prices could drop by about 1% before the end of 2025
- Mortgage rates may stay around 6.8%, despite hopes for a dip to 6%
Buyers are being more cautious, and that means sellers need to adjust their expectations. Clean, well-priced homes in good condition still have a shot — but today’s buyers won’t hesitate to walk away if something feels off.
What Should Sellers Do?
If you’re planning to sell in 2025:
- Be prepared for more buyer demands and inspections
- Don’t overprice your home — buyers are walking away
- Fix small issues before listing to avoid last-minute cancellations
- Work with a real estate advisor who knows how to navigate this market
The record number of canceled home sales in June shows us one thing clearly: buyers are no longer rushing in. They want value, stability, and confidence in their decision. Sellers who understand this shift — and prepare for it — will have the best chance of closing the deal.
Stay smart, stay informed, and if you’re planning to sell, don’t go it alone — the market is changing fast.
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