Is the Housing Market Shifting? What Rising Cancellations Mean for Conroe & The Woodlands

If you’ve been following the news, you might have seen a lot of headlines recently about a changing housing market. A recent study by LiveNOW from FOX on July 29, 2025, pointed out a significant trend: pending home-sale cancellations are on the rise, reaching nearly 15% nationwide. It’s a statistic that might sound alarming, but it’s actually a key indicator of a market that is slowly but surely shifting.

For the last few years, we’ve been in a frenzied seller's market. Demand was high, inventory was low, and buyers often had to waive contingencies or pay well over asking price just to get their offer accepted. It was a tough landscape, especially for first-time homebuyers and families looking to move up.

But with pending sales falling through at a higher rate, we’re seeing a change. This new dynamic is giving buyers more power to negotiate. So, what’s behind this trend, and what does it mean for you, whether you’re looking to buy or sell a home in our local area of Conroe, The Woodlands, Spring, Magnolia, Willis, Porter, New Caney, Lake Conroe, or Montgomery, Texas?

Why Are Home Sales Falling Through?

There are a few key reasons behind the rising cancellation rate. For one, the market is no longer moving at a breakneck pace. We’re seeing more homes come on the market, which gives buyers more options. When a buyer finds a new home they like better, they might be willing to walk away from a deal to pursue it, something that was almost unheard of just a year or two ago.

Another big factor is affordability. Despite some stabilization, home prices and mortgage rates are still higher than many buyers are comfortable with. When a home inspection reveals a costly repair or the appraisal comes in lower than the contract price, a buyer might decide the financial risk is too great, and they’ll cancel the deal rather than try to renegotiate. This is especially true when they have other options to choose from.

What This Means for Buyers in Montgomery County

This is great news for you! The market is becoming more balanced, and you have more leverage. You no longer have to feel pressured into waiving your inspection contingency or offering tens of thousands over asking price. Now, you have the opportunity to:

• Be more selective: With more homes available, you can take your time to find the perfect property that truly fits your needs and budget.
• Negotiate: You have more power to ask for repairs based on a home inspection or to negotiate a lower price if the appraisal comes in low.
• Avoid bidding wars: While some highly desirable homes may still see competition, the intense bidding wars we saw in recent years are becoming less common, which means you have a better chance of getting a fair deal.

What This Means for Sellers in the Conroe Area

For sellers, it’s important to adjust your strategy to the new market. The days of putting a sign in the yard and getting multiple, over-asking offers in 24 hours are likely behind us. But that doesn’t mean you can’t have a successful, stress-free sale! You just need a different approach.

• Price it right from the start: Overpricing your home is the #1 reason a deal might fall through. By setting a realistic and competitive price, you’ll attract serious buyers who are ready to make an offer that will stick. A professional home valuation is more important than ever.
• Prepare for the inspection: Don’t assume a buyer will overlook a a faulty HVAC or leaky roof. Be proactive by getting a pre-inspection or addressing any known issues before you list.
• Be willing to negotiate: Buyers are now expecting a more cooperative experience. Being flexible on inspection findings or repair requests can be the difference between a successful closing and a cancelled contract.

The Bottom Line

A shifting market isn’t a sign of a crash; it’s a sign of a return to a healthier, more balanced real estate environment. For buyers, this is a fantastic opportunity to find a home without the pressure of a frenzied market. For sellers, it means working with a knowledgeable, experienced team who can help you navigate these new dynamics to ensure your home sells successfully.

If you’re thinking about selling your home in Conroe, The Woodlands, or the surrounding areas, a proper valuation is the first step to a successful sale in today’s market. Find out what your home is worth with our free, no-obligation home valuation.

Get Your Free Home Valuation Here

Sources:

https://www.livenowfox.com/news/home-sale-cancellations-rising-buyers-market

https://themortgagepoint.com/2025/08/21/record-number-of-home-purchases-canceled-in-july