Home Purchase Backouts on the Rise: What This Means for Connecticut

Neil Caron
Sep 19
2 min read

September 19, 2025 | Housing Market Trends | Presented by ReadySetLoan™️

Contract Cancellations Hit New Highs

Home purchase cancellations are climbing fast. In July, 1 in 7 home deals fell through, the highest July cancellation rate since tracking began in 2017. That’s 15.3% of contracts collapsing—a clear sign of shifting buyer sentiment in today’s affordability-strained housing market.

Across the country, but especially here in Connecticut, buyers are hesitating. Rising mortgage costs, higher insurance premiums, property tax burdens, and post-inspection surprises are all combining to make some deals fall apart before closing.

Why Buyers Are Backing Out

Affordability Strains: Larger monthly payments (mortgage, insurance, and taxes) are pushing even motivated buyers to second-guess commitments.
Inspection Surprises: Homes that don’t pass the inspection test leave buyers with repair bills they’re unwilling to shoulder.
Second Thoughts: With more inventory coming online, buyers are weighing options and walking away when something better—or cheaper—emerges.

What It Means for Connecticut

Connecticut’s market has its own unique dynamics: property taxes run higher than the national average, insurance premiums are trending upward, and inventory—though improving—remains tight. Together, this creates more friction between buyer expectations and seller pricing.

Buyers: Now is the time to be strategic. Have financing aligned, know your budget, and move decisively when the right home hits the market.
Sellers: Transparency is key. Pre-inspections, competitive pricing, and presenting homes in move-in-ready condition are the best ways to reduce risk of deals unraveling.

Neil’s Take 🎤

“This wave of cancellations isn’t just about hesitation—it’s about misalignment between expectations and reality,” says Neil Caron, Area Sales Manager at CMG Mortgage. “In Connecticut’s market, buyers need financial clarity more than ever, and sellers must be ready to present confidence—both in pricing and presentation.”

🐷 RSL Piggy Points

1 in 7 deals fall through—a record pace of cancellations.
Affordability crunch (rates, taxes, insurance) is the leading culprit.
Buyers who act with financing clarity will win in this environment.
Sellers who price smart and prepare homes stand the best chance to close.

RSL Perspective

At ReadySetLoan™️, we know clarity drives confidence. Deals crumble when uncertainty creeps in. That’s why we guide Connecticut buyers and sellers through every step—bringing transparency, strategy, and confidence to the table. When you understand the numbers, you’re empowered to cross the finish line strong.

Final Lap

Record cancellation rates are more than headlines—they reflect a fundamental shift in housing dynamics. For Connecticut homeowners and house hunters, success now requires preparation, realism, and clarity. That’s where ReadySetLoan™️ steps in—your resource and partner for making confident moves in a market that rewards precision.