New data shows that more homebuyers in Pennsylvania are walking away from home deals. In June 2025, about 17% of pending home sales in the state were canceled. That’s higher than the national average of around 15%. Some areas, like Montgomery County near Philadelphia, saw even more cancellations. This trend suggests that many buyers are starting to hesitate and feel unsure about going through with their purchase, even after making an offer.

Inspections Are a Common Deal Breaker

Most of the canceled deals happened during the inspection period. This is when the buyer gets the home checked for issues before officially closing the deal. If problems are found, like a leaky roof or old electrical systems, buyers can ask for repairs or a lower price. But instead of negotiating, some buyers are using this moment to back out altogether. Some simply find another house they like more or realize the home isn’t worth the asking price.

Buyers Have More Choices Right Now

There are more homes on the market compared to last year, which means buyers don’t feel rushed. They know if they don’t get one home, they’ll likely find another. This makes it easier for buyers to cancel a deal if they feel uncomfortable or find something better. In many parts of Pennsylvania, homes are sitting longer without selling, and sellers are starting to drop prices. That gives buyers more power than they had just a year ago.

Higher Mortgage Rates Are Scaring People

Another big reason for the cancellations is high mortgage interest rates. Right now, interest rates are hovering around 7%, which makes monthly payments a lot more expensive than they were just a couple of years ago. Some buyers might get pre-approved for a loan, but once they see the actual costs with interest, taxes, and insurance, they get nervous and cancel the deal before signing anything final.

What This Means for Buyers and Sellers

If you’re looking to buy a home in Pennsylvania, this might be a good time. You’ll have more options and may be able to negotiate a better deal. But if you’re a seller, you need to be prepared for possible cancellations, even after a buyer makes an offer. Homes might take longer to sell, and you might need to make repairs or offer price cuts to close the deal. It’s a tough market for sellers but offers more breathing room for cautious buyers.