Written by: Internal Analysis & Opinion Writers
U.S. housing markets are entering a more balanced phase: active listings are up sharply, but a rising number of pending sales are falling apart, signaling a disconnect between buyers and sellers amid continued affordability pressures.
Active listings climbed to approximately 1.36 million in June, marking a double-digit increase from a year earlier and the highest level seen since late 2019. This resurgence suggests that buyers now have more choice in a market previously defined by tight supply.
Despite the increase in available homes, affordability remains a major obstacle. With mortgage rates hovering near 6.8%, many buyers are being pushed out of the market, while others are delaying their search—drawing attention back to the fragility of buyer demand.
One striking consequence of this tension is the rise in canceled home sales. In June, more than 57,000 pending transactions were pulled—a record high for the month. That means roughly 15% of contracts were aborted before closing, underscoring how quickly market momentum can shift.
Several trends are fueling these cancellations. Some buyers are exiting contracts after inspection or appraisal contingencies, triggered by unexpected repair needs or appraisals falling short. Others are backing away after seeing final monthly mortgage costs—only to realize financing isn’t as affordable as expected. Broader economic worries, such as inflation and employment uncertainty, are adding a layer of caution.
Analysts note that this cancellation surge reflects a buyer-leaning market. With more options and fewer bidding wars, prospective buyers feel emboldened to pause transactions if terms or rates aren't favorable.
Price trends are starting to reflect this new dynamic. Experts expect median home prices to dip modestly—around 1%—by the end of 2025. Mortgage rates are also likely to stay elevated in the high 6% range, reinforcing a market that’s stretching but not collapsing.
Buyers now benefit from increased leverage—longer timeframes, more negotiation room, and less frenzied competition. However, with affordability still tight, sudden rate increases or economic shocks could derail transactions at the last minute.
For sellers, the playbook has shifted. High inventory and financial pressure mean overpricing is less forgivable. To stay competitive, real estate pros recommend realistic pricing strategies, strong staging and marketing, and a readiness to accommodate buyers’ conditions or requests.
Overall, the market appears to be recalibrating from seller dominance to a more measured landscape. Buyers are cautiously reclaiming influence, even as elevated rates continue to cast a shadow. For both sides, the path forward requires adaptability and realistic expectations.
