Why So Many Home Sales Are Falling Apart Right Now
One out of every six homes under contract didn’t make it to the closing table last month.
That’s not bad luck. It’s not random. And it’s not a broken market.
It’s what happens when expectations don’t match reality — on both sides of the transaction.
According to Redfin, December saw the highest contract cancellation rate ever recorded, with 16.3% of pending home sales falling apart, representing roughly 40,000 transactions that never closed. This isn’t panic. It’s a return to balance — and balanced markets expose inexperience fast.
This Isn’t a Crash — It’s a Reset
Inventory is up. Buyers have options again. Urgency is no longer guaranteed.
For years, speed solved everything:
Homes sold quickly
Inspections were rushed or minimized
Aggressive pricing got forgiven
That environment is gone.
Balanced markets require a different skill set — and many people navigating today’s market have simply never worked in one like this before.
What’s Really Driving These Cancellations
A large percentage of today’s real estate agents entered the business after 2020. They learned in a market where:
Overpricing still worked
Inspections were treated like formalities
Emotional decisions didn’t get punished
That training doesn’t translate well anymore.
Today’s market demands:
Clear expectations from day one
Proper home preparation before inspections
Calm, grounded explanations of inspection results
Helping buyers think clearly instead of emotionally
When agents aren’t backed by experienced brokers or teams, those gaps show up — often mid-transaction, when it’s too late.
There Is No Such Thing as a Perfect Home
Every property has:
Age
Wear
Quirks
Deferred maintenance
Some inspection findings absolutely justify walking away if the seller won’t address them:
Structural issues
Safety concerns
Major system failures
But many findings don’t.
Just because a buyer can cancel doesn’t mean they should. Walking away from everything turns healthy selectivity into paralysis. A professional’s job is to help clients tell the difference.
What This Means for Sellers
You don’t get paid for going under contract. You get paid for closing.
That requires realism upfront:
Pricing grounded in today’s market
Preparation before inspections
Honest communication about condition
Overpricing or hiding issues no longer gets negotiated away quietly. It gets rejected.
What This Means for Buyers
You’re not shopping for perfection — you’re buying a home.
Inspections are information, not a pass/fail test:
Some findings are true red flags
Others are normal ownership realities
The goal isn’t zero issues. It’s knowing which ones matter. Discipline beats fear — but so does perspective.
What This Means for Agents
This is where experience shows:
Guiding buyers without inflaming fear
Advising sellers without sugarcoating reality
Framing inspections as decision tools, not emotional events
This market rewards calm leadership and preparation. It exposes shortcuts.
The Bottom Line
This isn’t a broken market.
It’s a market that no longer covers up poor guidance.
When expectations are set early, homes are priced honestly, and inspections are framed correctly, transactions hold together. When they aren’t, they don’t.
Experience matters again.
