Deal Cancellations Up 20-25% in Connecticut as Buyers Experience Post-Offer Regret

Written by:

Rudi Davis

Date:

05 Apr 2026

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Residential deal cancellations in Connecticut have increased 20 to 25 percent year over year, according to Michael Calabro, Broker/Owner & REO Director at Coldwell Banker Calabro & Associates. Unlike previous years, the primary driver is buyer psychology rather than financing or appraisal issues.

In a competitive, low-inventory market, buyers are waiving inspections and stretching their budgets to secure homes. Many reconsider after the bidding rush fades. Calabro says buyers are increasingly experiencing regret after making high-priced, fast decisions.

“People are rushing in and overpaying sometimes. Then they think they’ve overpaid and back out, often citing inspections or other issues as the reason. But really, they’re just getting cold feet,” he explains.

This pattern suggests that stated reasons for cancellations, such as inspection failures or financing issues, may mask a simpler reality. Buyers are rethinking the prices they agreed to pay.

Inspection Waivers and Risk

Low inventory has made inspection waivers common in multiple-offer situations. Buyers are prioritizing winning bids over due diligence, increasing their exposure to risk.

“A lot of them don’t do inspections. They’re waiving the inspection so they can get their offer accepted if it’s a multiple-offer situation. So it’s not really inspection issues; it’s just more people getting cold feet,” says Calabro.

This creates a clear contradiction. Buyers who skip inspections to win deals may later raise inspection concerns to exit contracts. Calabro suggests this can serve as a convenient justification for backing out.

The pressure is especially strong in markets with limited supply. In Connecticut, listings are down 60 to 70 percent compared to pre-pandemic levels. This shortage continues to intensify competition among buyers.

Bidding vs Buyer Commitment

Buyers are making rapid offers, often above asking price, even when no competing bids exist. The urgency reflects a fear of missing out rather than a measured evaluation of value.

“When they see something, they’ll make an offer immediately. Even if there are no other offers, they’ll still go over asking, hoping the seller will accept before a bidding war starts,” Calabro says.

This behavior can lead to deals that may not reflect true willingness to pay. Once the excitement fades, buyers often reassess whether the price aligns with their financial comfort.

The rise in cancellations highlights a growing gap between aggressive bidding and genuine commitment. In more stable conditions, buyers typically follow through after careful evaluation. In the current market, decisions are often driven by urgency instead of long-term confidence.

Market Stability Concerns

The market shows surface-level strength, including high prices, quick sales, and multiple bids. However, rising cancellations point to underlying instability.

Calabro notes that fallout rates are 20 to 25 percent higher than last year, marking a notable recent shift. This trend coincides with persistently high interest rates and rising property values, which may be pushing buyers to their affordability limits.

If competition drives transactions more than true demand, the market may be more vulnerable to a correction than sales data suggests. Buyers may still bid aggressively, but many are less willing to complete purchases once financial realities set in.

Brokerage Strategy and Technology

Despite market challenges, Coldwell Banker Calabro & Associates has maintained stable transaction volume. The firm began investing in technology in 2019, focusing on lead generation, client communication, and marketing automation.

“We took a huge surge with technology back in 2019, right before the pandemic. So we started this even before AI became a thing a couple of years ago,” Calabro says.

The brokerage now uses AI tools to support tasks such as writing MLS listings and managing client communication. These systems help maintain engagement and improve operational efficiency.

U.S. home sales dropped to just under 4 million units in 2025, compared with a typical 6 million. Despite this decline, Calabro’s office has remained steady or slightly increased its activity. Its use of technology may be helping it capture a larger share of a smaller market.

Outlook for Connecticut Market

The increase in deal cancellations may signal an early warning for Connecticut’s housing market. As buyers become more cautious, the gap between asking prices and buyer confidence continues to widen.

Sellers and agents may need to adjust expectations. Deals could take longer to close, and contract fallout may remain elevated.

For buyers, acting on impulse in a competitive market can lead to regret and lost time. For sellers, pricing homes based on sustainable demand rather than peak competition may become more important as conditions shift.