It is becoming more common for listings to be pulled off the market before closing. While the numbers have not hit all-time highs, the rate of cancellations has crept back toward 2019 levels. The buyer pool is smaller than it was, and many homes are not making it to the finish line. With 14 percent fewer active listings compared to 2019, nearly matching those cancellation levels highlights just how soft today’s market has become.

​

Sellers Must Ask the Right Question
For sellers, the most important question right now is not how fast homes are selling, but rather how to avoid becoming a canceled listing. Too many are still pricing and positioning their homes like it is still 2021. But we are in a new market. To actually close, sellers need to get real about how buyers are behaving and what the competition looks like today.

​

“Highest Ever” Needs Context
It is important to be cautious when interpreting headlines that claim cancellation rates are the highest ever recorded. Many data sources only go back about a decade, so statistics do not always capture historic periods like 2007 and 2008 when cancellations were truly extreme. For example, Redfin’s “highest on record” cancellation claims are based on data from 2013 onward. Broader historical context matters when shaping the narrative.

​

Price Point Matters
Higher-priced listings are more vulnerable right now. Roughly 50 percent of sales this year have been below $600,000, but only 41 percent of cancellations are in that range. On the other hand, homes priced above $1 million represent about 10 percent of all sales yet account for 28.5 percent of cancellations. This tells a clear story: overpriced higher-end homes are more likely to be pulled from the market before closing.

​

Condos Are Struggling More
The cancellation rate among condos and townhomes is even higher than for detached homes. Increased HOA fees, insurance challenges, and shifting buyer preferences are all playing a role. Although not every condo community is experiencing the same decline, many are feeling the pressure. A new California balcony safety law (SB 326) that took effect in 2025 is not believed to be the primary reason for the slowdown, as these trends began before it was implemented.

​

You Cannot Hide from Listing History
Relisting a property after pulling it down does not erase the past. Buyers and appraisers can see the full listing history. Unless a property is off the market for at least 30 days, the “days on market” clock continues ticking. Additionally, appraisal reports explicitly include price changes and listing history. This means lenders are aware of how long a property has been sitting and any price reductions or re-listings.