PHOTO: Realtors sound the alarm: “This is 2008 all over again”. cottonbro studio
📉 Redfin Reports Show Home Contract Cancellations at Second-Highest Level in History
Realtors sound the alarm: “This is 2008 all over again”
A fresh wave of panic is sweeping across the US property market as new data reveals one in seven homebuyers pulled out of deals in April 2025—marking the second-highest cancellation rate ever recorded for the month, second only to the onset of the COVID-19 pandemic.
According to Redfin, a staggering 56,000 home contracts collapsed last month—14.3% of all pending sales.
📌 👉 Read more: Realtors reveal how much house prices will fall in 2025
“We’re seeing deals collapse all over the place—especially in hot markets like Las Vegas and Phoenix,” said Joel Efosa, CEO of Fire Cash Buyer.
“The market is crashing before our eyes.”https://www.propertynoise.co.nz/boost-your-brand-with-6-professionally-written-press-releases-just-799gst/
💥 What’s Behind the Buyer Exodus?
There’s no single culprit—it’s a perfect storm.
✅ Mortgage Rates at 7% – With the average 30-year fixed mortgage hovering around 7%, many would-be buyers are discovering their monthly payments are simply unaffordable.
✅ Job Insecurity – With recession fears looming, many buyers are getting cold feet, worried about layoffs and uncertain incomes.
✅ Skyrocketing Insurance Costs – In high-risk zones like California and Louisiana, buyers are unable to secure affordable insurance, leading lenders to cancel deals altogether.
✅ Fear of Falling Prices – With signs of a housing bubble burst looming, buyers are wary of purchasing at the peak, only to see home values drop sharply.
📌 👉 Related: Realtors panic as buyers pull out of deals at near record levels
Buyers worried how tariffs going to impact the housing market says realtor Desiree Bourgeois
📍 Where Is the Housing Market Crashing Hardest?
Redfin’s data shows certain regions are being hit harder than others. Here’s a snapshot of the worst-affected cities by contract cancellations:
| 📍 City | ❌ Cancellation Rate |
|---|---|
| Atlanta, GA | 20.0% |
| Orlando, FL | 19.4% |
| Tampa, FL | 19.1% |
| Riverside, CA | 19.1% |
| Miami, FL | 18.9% |
| Fort Worth, TX | 18.7% |
Meanwhile, areas like Glen Cove and Sea Cliff in Nassau County, New York, reported the lowest cancellation rates, at just 4.8%.
California is also seeing many home buyers pull out of contracts at the last minute
🌪️ “A Buyer’s Market—If You Dare”
Interestingly, while many buyers are fleeing, others are snapping up bargains as deals fall through.
“Two of my clients scored incredible homes after contracts collapsed,” said Alison Williams, a Sacramento-based agent.
“When a deal dies, we swoop in—sometimes before the home even hits the market again.”
She advises savvy buyers to submit backup offers. If the first deal falls apart (as many are), they could score the home—at a discount.
💣 Sellers Slashing Prices as Panic Sets In
Realtors across the country report that sellers are finally facing the music. They’re dropping asking prices and offering major concessions just to keep deals afloat.
“We’re seeing sellers reduce prices and even pay closing costs,” says Efosa.
“They know the buyers are in control now.”
📌 👉 Also trending: US housing crash: Fear as home buyers bail at record levels
🧨 Market Correction Incoming?
Many experts are drawing comparisons to the 2008 crash—and not without reason.
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Foreclosures are climbing
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Inventory is ballooning—up 16.7% YoY
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Buyer confidence is tanking
Efosa puts it bluntly:
“This affordability crisis will force a correction. I’m waiting it out—then I’ll buy.”
Redfin predicts US house prices will fall by 1% in 2025, bringing an end to over a decade of uninterrupted growth.
🧠 Key Takeaways for Buyers and Sellers
| 🏠 For Buyers | 🏚️ For Sellers |
|---|---|
| Submit backup offers | Be realistic on price |
| Act fast on failed contracts | Offer concessions |
| Watch interest rates | Brace for longer time on market |
This shifting landscape means opportunity for some and disaster for others.
🧭 What Does This Mean for NZ Property Watchers?
Although this report focuses on the US market, there are lessons for Kiwi buyers and sellers too. Rising global rates, affordability concerns, and economic uncertainty are not confined to the US.
Keep an eye on developments—what happens in Florida, Texas, and California could very well foreshadow trends in Auckland, Wellington, and Christchurch.
SOURCE: THE DAILY MAIL