Buyers feel in control in today’s market, and they’re walking when something feels off. I’ll show you the key reasons deals fall apart and what to do about them.
Buyer cancellations have been rising across the country, and we are seeing the same trend here in Palm Springs. In June alone, nearly 15% of home sales in the United States were canceled. That translates to more than 57,000 purchase agreements that fell apart. It’s the highest cancellation rate recorded in any June since Redfin began tracking this data in 2017. These numbers reflect a larger shift in the housing market that both buyers and sellers should take seriously.
One of the biggest reasons for this trend is that we are now in a buyer’s market. In the Greater Palm Springs area, there are 5.3 months of housing inventory, which gives buyers more power and more options. Many of them are taking their time, and if anything feels off during escrow, they are walking away. Inspections are another major factor.
When buyers discover issues like outdated systems, roof problems, or plumbing concerns, they are not hesitating to cancel. They don’t feel the same pressure to push forward with a deal that no longer makes sense for them.
Affordability is also playing a role. Mortgage rates have remained high, and buyers are experiencing payment shock. Even those who get pre-approved are sometimes surprised by the actual monthly cost once all the details are factored in. This can lead them to second-guess their decision and back out before closing.
Here in Palm Springs, we are seeing the same signs. The median sale price is currently $695,000, slightly lower than last year. However, homes are sitting on the market longer, with a median time to sell now at 77 days. Sales volume is also down 7.6%, and 41% of active listings have reduced their prices. Deals are falling through more often, often due to inspection findings or financial complications uncovered during escrow.
If you’re selling, now is the time to get ahead of these issues. A pre-listing inspection can help you identify and address problems before buyers find them. Pricing strategy matters as well. If you start too high and plan to negotiate down later, you may end up chasing the market. Buyers are comparing options and looking for value. They will skip overpriced homes without hesitation. Once under contract, sellers should stay engaged, respond quickly, and be willing to offer reasonable concessions.
Cancellations may be higher than usual, but that also means there are more opportunities for those who are prepared. If you are thinking about buying or selling in the Greater Palm Springs area, feel free to call or text me at 760-774-3066 or email me at Will@WillCookRealEstate.com. I can help you navigate the process with the right strategy and the right expectations.
