Episode Overview

Podcast: Your Money Minute
Host: Jessica Ettinger, CNBC
Episode Title: Home Buyers Cancel More Purchase Contracts
Date: September 15, 2025
Duration: 60 seconds

This episode delivers a concise report on a striking new trend in the U.S. housing market: the increasing rate of home purchase contract cancellations, particularly in light of rising costs and market uncertainties. Jessica Ettinger, with insights from CNBC's Diana Olick and Redfin data, breaks down why more buyers are backing out, the hot spots for these trends, and what it means for would-be homeowners.

Key Discussion Points & Insights

The Surge in Home Purchase Cancellations

• Main Trend:

  • Homebuyers are signing contracts and then "bailing out at an alarming rate."
  • [00:05] Jessica Ettinger notes the sharp rise and sets up the significance of this trend.

• Record Cancellation Rates:

  • The rate of cancellations is "the highest...since they began tracking this in 2017."
  • [00:12] Reported by Diana Olich, referencing July 2025 data.

Contributing Factors

• Rising Homebuying Costs and Skittish Buyers:

  • High costs are "making a lot of buyers skittish."
  • [00:18] Insights from Diana Olich and Redfin suggest affordability is a top concern.

• Regional Hotspots:

  • "Cancellations were most common in Texas and Florida, where home prices are falling."
  • [00:24] This suggests that regional market conditions—like declining prices—are playing a role.

• Buyers Avoiding Depreciation Risks:

  • Buyers do not want to "end up with a house that's worth less in a year"—the classic phrase "don't want to catch a falling knife" is used here.
  • [00:28] Illustrates the fear of buying into a declining market.

• Economic Uncertainty and More Choices:

  • General "economic uncertainty are making buyers uneasy."
  • "More homes are coming on the market, so buyers might find something better while they're under contract."
  • [00:38] Increased inventory gives buyers flexibility to reconsider.

• Inspection Period Discoveries:

  • "Buyers may also back out during the inspection period if they discover an issue they don't want to fix."
  • [00:48] Standard contractual protection, but increasingly used as a reason to exit.

Quantifying the Trend

• Redfin Data:
  • "15% of homes that went under contract in July...were canceled."
  • [01:01] Puts concrete figures on the trend, highlighting how common these cancellations have become.

Notable Quotes & Memorable Moments

• On the Trends:

  • “To buy or not to buy? Well, would be Homebuyers have been signing contracts to buy a home and then bailing out at an alarming rate.”
    — Jessica Ettinger [00:05]

• On the Record Cancellations:

  • “These contracts [are] being canceled at the highest rate since they began tracking this in 2017.”
    — Diana Olich [00:12]

• On Buyer Psychology:

  • “Don’t want to catch a falling knife and end up with a house that’s worth less in a year.”
    — Jessica Ettinger [00:28]

• On Regional Trends:

  • “Cancellations were most common in Texas and Florida, where home prices are falling.”
    — Jessica Ettinger [00:24]

• On the Prevalence:

  • “15% of homes that went under contract in July, says Redfin, were canceled.”
    — Jessica Ettinger [01:01]

Important Segments & Timestamps

• [00:05] – Episode Introduction:

  • Trend of buyers signing and then canceling home purchase contracts

• [00:12] – Record Rate Details:

  • Diana Olich reports highest cancellation rates since 2017

• [00:18] – Contributing Factors:

  • Redfin’s July data on falling-through purchases, with regional focus

• [00:28] – Buyer Hesitation:

  • Fear of price declines (“don’t want to catch a falling knife”)

• [00:38] – Market and Buyer Behavior:

  • Influence of economic uncertainty, rising inventories, and inspection periods

• [01:01] – The Numbers:

  • 15% cancellation rate for July contracts

Summary

This episode spotlights a worrisome trend for sellers and an opportunity for buyers: home purchase contract cancellations are surging, with 15% of July contracts falling through (highest on record since 2017). Causes include unaffordability, falling prices (especially in Texas and Florida), and a desire to avoid future losses. Economic uncertainty and increasing inventory allow buyers to be choosier, even after signing a contract.

Further resources on the real estate market:

• Visit cnbc.com

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