More Buyers Are Backing Out of Home Deals. Here’s What That Means for Arizona
by Olga Boyke–Your Local Arizona Real Estate Partner
The real estate world is shifting, and if you’ve been paying attention to headlines lately, you might have seen this one: More and more buyers are walking away from deals. And not just a few. National data shows that 16 percent of pending home sales were canceled in June. That’s a big number.
So what’s going on here? And how does this affect our local Arizona market? Let’s break it down.
Buyers Are Regaining Leverage
We’re moving away from the frenzied seller-dominated market that defined the last couple of years. During the peak of the pandemic housing boom, buyers had almost no negotiating power. Homes were flying off the market in days, with multiple offers and few contingencies. Inspections were waived, prices soared, and many buyers felt pressured to make decisions quickly.
That’s no longer the case.
Now, more listings are staying active longer, price reductions are becoming more common, and buyers are taking their time. They’re walking away when inspection reports raise red flags or when interest rates make monthly payments feel just a little too high. And the numbers prove it: Cancellations are up across the board.
Why Are Buyers Canceling Contracts?
There are a few key reasons why this is happening:
Inspection Issues
With more homes on the market, buyers no longer feel the pressure to accept major repairs or overlook defects. When something pops up in an inspection report that feels costly or risky, many are deciding to walk away rather than take on the burden.
Financing Falls Through
As mortgage rates fluctuate and home prices remain relatively high, some buyers are finding themselves squeezed on the lending side. If pre-approvals change or underwriting conditions shift, deals can collapse overnight.
Better Options Come Along
With inventory finally building back up in certain areas, buyers are no longer limited to just one or two decent homes. If a more appealing property hits the market after they’ve already made an offer, they may be willing to back out and pursue the new opportunity.
What This Means for Arizona Homebuyers
If you're looking to buy in Arizona right now, this shift can actually work in your favor.
You have room to breathe. You can take your time to compare listings, ask questions, and negotiate terms that work for you. You also have more power to walk away if a deal doesn’t feel right. This doesn’t mean you should back out of contracts lightly, but it does mean you can be more selective and strategic with your decisions.
Just make sure you're doing your due diligence up front. Having a knowledgeable agent who can guide you through inspections, contingencies, and timelines is essential in this type of market.
Advice for Sellers: It’s Time to Be Flexible
Sellers, this isn’t bad news. It’s just a reminder that today’s buyers are more informed and cautious. That means your pricing, presentation, and responsiveness are more important than ever.
If your home is priced right, professionally presented, and marketed with intention, there are still plenty of motivated buyers out there. But gone are the days when you could expect multiple offers within 24 hours, no questions asked.
Being open to negotiation and keeping your home in top showing condition can make all the difference in attracting the right buyer and keeping your deal on track.
The Arizona Market Is Stabilizing
Let’s zoom out for a second. This isn’t a crash. This isn’t a slowdown. What we’re seeing is a rebalancing.
Arizona’s market is still active, still growing, and still full of opportunity. But it’s also more realistic, more measured, and, frankly, healthier. This is the kind of market where smart buyers and smart sellers can make truly great decisions.
A More Empowered Buyer Experience
If you’ve been sitting on the sidelines, waiting for a sign that the playing field was evening out, this is it. Buyers are no longer stuck with “take it or leave it” offers. They’re negotiating, walking away when necessary, and making thoughtful choices.
This new level of leverage doesn’t mean being overly picky or chasing the perfect deal. But it does mean asking the right questions, reading the fine print, and standing firm on what matters most to you.
Stay Ready, Stay Smart.
Real estate is constantly evolving, and 2025 is shaping up to be a year of smarter moves and more balanced deals. Whether you’re buying, selling, or just trying to figure out where you stand, I’m here to help you navigate the process with confidence.
Want to know what’s happening in your specific neighborhood? Thinking about selling but unsure if now is the right time? Let’s talk. The Arizona market is still full of opportunity, you just need the right guide to help you make the most of it.
Reach out anytime. I’m here when you’re ready.
