Home Purchase Cancellations Are Spiking—And It’s All About Affordability
- Neil Caron
- 2 days ago
- 2 min read
September 3, 2025 | Housing Market Trends | Presented by ReadySetLoan™️
Want the headlines in a nutshell? About 1 in 7 home purchase contracts are collapsing—and it's not buyers changing their minds. High mortgage payments, escalating housing costs, and wages that haven’t kept pace are breaking agreements, not just delaying them.
What’s Fueling the Collapse in Homebuying
Unrealistic cost-to-income ratios: The typical income earner now must spend 36–37% of their wages just to afford mortgage payments, whether for new or existing homes. That’s pushing many into "deal break" territory.
Affordability gap for low earners: Households earning half the median income would need 71–74% of their income to cover housing costs—nearly making homeownership unattainable.
Buyers backing out: With home prices far outpacing what’s affordable, more buyers are pulling back, leading to record-high cancellation rates—especially when sticker shock collides with mortgage reality.
What This Means for Connecticut
Role | Insight for You |
Buyers | If you're house-hunting, having mortgage clarity is everything. Use affordability calculators and lock pre-approval before falling in love with a home. |
Sellers | Expect longer timelines. Pricing and financing transparency are now among the first items buyers evaluate—not last. |
Neil’s Take
“We're seeing a surge in cancellations—driven by mismatches between home prices, costs of borrowing, and what wages actually support,” says Neil Caron, Area Sales Manager at CMG Mortgage. “In Connecticut, that means buyers may fall in love with a home, only to realize it's no longer within reach. That’s why financial clarity and realistic expectations are key. At ReadySetLoan™️, we help clients align what they find with what they can truly afford.”
RSL Piggy Points
1 in 7 contracts are falling apart—due to affordability, not indecision.
Even monthly payments that spend over a third of income are tipping buyers into exit mode.
Lower-income buyers are most squeezed, facing unsustainable payment burdens.
In Connecticut, thorough pre-qualification and transparent pricing can make the difference between a closed deal and a collapsed one.
RSL Perspective
At ReadySetLoan™️, we believe every successful home purchase starts with affordability—before emotions, before inventory, before location. When buyers and sellers are equipped with clear, honest expectations, homes close confidently.
Final Lap
Home purchase deals are unraveling at record levels, driven by a growing mismatch between housing costs and wage growth. In Connecticut’s market, the key to success lies in being grounded—affordably grounded. And ReadySetLoan™️ is here to help you build on that foundation.
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