Real estate deals are falling through at record numbers. Here's why.

Housing Market Trends - Homebuyer cancellation rates have risen to a record high for this time of year due to disagreements between buyers facing high interest rates and sellers with low pandemic-era mortgage rates [2] - The sale-to-list ratio is falling, indicating that more homes are selling below their asking price, giving buyers more negotiating power [4] - The housing market typically cools down in the fall as people become busy with school and holidays [6] Pricing and Affordability - Home prices are increasing at a slower rate than inflation, suggesting a real erosion of value [8] - Falling mortgage rates may not lead to a significant acceleration in prices due to an increase in both buyers and sellers [9] Regional Variations - The Midwest is experiencing increasing home values, driven by growing economies and relatively affordable homes compared to the national average [10] - Texas and Florida are becoming more affordable due to increased housing construction, particularly in the condo market [12] Negotiation Dynamics - Buyers are using inspections as negotiation points, but sellers are often unwilling to concede, leading to deal cancellations [3] - Sellers without competing offers are more likely to lower their prices to secure a sale [5] Supply and Demand - Increased demand in the Midwest is meeting limited supply, driving up prices [10] - An increase in home sellers relative to buyers could lead to price moderation [7]