Home Sales Are Falling Through as Economic Anxiety Freezes the Market

Rising Cancellations Create Housing Market Uncertainty

Homebuyers and sellers across the country are hitting pause on major moves as economic uncertainty mounts. According to new Redfin data reported by The Wall Street Journal, about 15% of home-purchase agreements were cancelled in September — up from 13.6% a year earlier. Buyers are facing steep housing costs, employment concerns, and a volatile economy, leading to more cold feet and last-minute exits from deals.

Sticker Shock Meets Stalemate

Elevated mortgage rates and rising insurance and tax costs continue to weigh on affordability. Many would-be buyers say they are being priced out mid-process or growing nervous about long-term financial stability. Sellers, meanwhile, are reluctant to budge on price — creating a standstill. “Buyers and sellers seem to have reached a stalemate,” the report notes, as both sides wait for conditions to improve.

Deals Collapse — and Listings Disappear

The turbulence hasn’t been limited to cancelled contracts. If buyers are walking away, sellers are increasingly doing the same. Realtor.com data shows delistings jumped 52% in September, suggesting homeowners are opting to stay put rather than negotiate lower prices or risk sitting on the market for months. Many current homeowners still hold ultra-low mortgage rates from recent years, making it harder to justify moving in today’s environment.

Emotional Toll on Buyers

Behind the economic figures are emotional stories. One buyer described the process as “grieving the loss of that house,” highlighting how today’s market pressures stretch far beyond financial spreadsheets. With transactions stalling, emotions rising, and confidence slipping, the real estate market continues to navigate one of its most uncertain chapters in years.