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While the number of cancelled contracts for home purchases increased in September, deal cancellations are rare in Greater Boston despite a weakening local economy and concerns about two of the region’s major industries.
A new analysis by economists at Redfin found that, nationwide, 15 percent of single-family and condominium sales that went under contract in September were cancelled. That’s up from 13.6 percent in September of 2024.
But in the Boston area, just 10 percent of deals were cancelled, a slight increase from 9.7 percent a year prior.
That’s despite indicators suggesting many in the region are under a higher level of economic stress, and a federal government shutdown that a prominent economist says could tip the state into a recession.
The statewide jobless rate hit 4.8 percent this summer after steady increases over the last 24 months, above the national 4.2 percent jobless rate.
And a withering biotech investment environment is shrinking the state’s life science industry, a state of affairs expected to worsen amid cuts to federal research funding – cuts that are also forcing even Harvard University to slash budgets in its research arms and academic programs.
The Redfin analysis found the highest rate of cancelled purchase-and-sale agreements was in the South last month, with Florida and Texas leading the way. A lack of inventory is credited for the low cancellation numbers seen in Boston and the rest of the Northeast.
While cancellations increased nationwide on a year-over-year basis, they were on par with the last moment of significant economic concern. Relative to to September of 2023, September 2025’s rate of cancellations remained relatively flat. Two years ago, 15.3 percent of deals fell through.
Redfin agents said in a recent survey that more than 70 percent of the deals that fall through do so during the inspection. Additionally, Redfin noted that a slow market and the uptick in canceled deals are causing some potential sellers to hold off on listing their home altogether.
A new law took effect in Massachusetts this month effectively banning the waiver of home inspections before a purchase-and-sale agreement is signed.
Banker & Tradesman staff writer James Sanna contributed to this report.
