Chad Hegrat
We’re continuing to see a clear trend: more and more pending home sales are falling through. In fact, the cancellation rate is up nearly 1% compared to this time last year. So what’s going on? Well… let’s be honest, this isn’t 2021 anymore. Back then, the market was on fire. Demand was sky-high, inventory was extremely limited, and buyers were doing just about anything to win a deal. People were waiving inspections and appraisals left and right just to get their offer accepted. Sellers had all the leverage, and deals rarely fell apart because buyers were too afraid to lose the house. Now? It’s a completely different game. Demand has cooled off. Mortgage rates are higher. Buyers are more cost-conscious, and they’re no longer jumping at the first listing they see. Not only that, but inventory has gone up as well, giving buyers more choices and more leverage. That means they’re not feeling the pressure to waive contingencies like they used to. This shift has given buyers room to slow down, do their due diligence, and walk away if they find something they’re not comfortable with. It could be due to a bad inspection report, a low appraisal, or simply just a gut feeling. And because there are more homes to choose from, it’s easier for them to move on and find one that feels like less of a hassle. On top of that, today’s economic uncertainty is playing a role too. Buyers are more cautious. They’re thinking twice before making a huge financial commitment. If the numbers don’t work or something feels off, they’re not afraid to cancel and regroup. So yeah, deals are falling through more often, but is it a bad thing? If you’re on the selling side, you could of course make that argument. But in reality, all it means is that the market has become more balanced; buyers aren’t panicking. They’re protecting their interests, and that’s a good thing for everyone in the long run. If you’re a seller in today’s market, this means setting realistic expectations, pricing your home correctly, and being open to negotiation. Because the days of ten offers in 24 hours with zero contingencies? Those days are over, for now anyways.