Cancelled contracts a new normal?
Over 47k real estate sales transactions in the United States were canceled in April, corresponding to 13,4% of all homes covered by contracts during that period, according to Redfin data.
“This is a tie with January, which recorded the lowest level of contract cancellations since September 2024, although over the past year and a half the level has fluctuated by less than half a percentage point,” the report reads.
Read also: Property prices in the United Kingdom suddenly slowed. London records the largest discounts.
Experts noted that both buyers and sellers “are increasingly better oriented in the housing market after several years of instability.”
“More and more sellers have accepted that the market is a buyer’s market in most of the country, and they are increasingly willing to lower prices and/or offer concessions to finalize transactions,” they said.
“Meanwhile, buyers have become accustomed to high mortgage payments, and the number of ongoing transactions is rising, so they may be less inclined to back out of a contract due to a price shock when they see the final monthly payment amount,” they added.
However, data shows that currently real estate purchase contracts in the U.S. are being terminated more often than at the end of 2020, in 2021 and early 2022, when the market advantage belonged to sellers.
“This happens because there are more sellers than buyers in the market, giving buyers the opportunity to withdraw during the inspection period if they find a property they prefer more,” it was reported.
“Some buyers also change their minds due to widespread economic uncertainty, including concerns about job security and the war with Iran,” it added.
Source: Redfin.
Read also: Brutal data from the real estate market. Apartment sales suddenly fell by almost 20%
See also: Market burst. “The year 2026 looks promising for buying a home.”
Is the U.S. real estate market favoring buyers?
The average interest rate on 30‑year mortgages in the United States fell in April to as low as 6.3%, but rose again to around 6,65%.
The market expects the Federal Reserve, currently led by Kevin Warsh, to keep rates within the current range of 3,5-3,75% at the June meeting.
Redfin experts argue that beyond macroeconomic factors, the key role in the process of canceled real estate sales in the U.S. is played by buyer preferences.
“We observe that some buyers cancel purchase contracts, but not more often than usual, and when buyers back out, it usually results from repair costs after inspection and appraisal,” said Timothy Hourigan, Redfin Premier agent.
“Buyers are usually decisive because supply is limited enough that they enjoy finding a home they like within their price range. In places like Syracuse, where homes are affordable compared to nearby large cities, there are more bidding wars than contract withdrawals,” he added.
The highest percentage of canceled contracts among the 50 largest U.S. metros in April was recorded by Atlanta (19,3%).
The lowest rate of contract withdrawals was in San Francisco, where in April 2.8% of contracts were canceled.
Chart. Average interest rates on 30‑year mortgages in the United States
Source: Mortgage News Daily.
Read also: Market slump. Home seekers “should know this” - experts say
See also: Real estate no longer falling. In the month 40k sales contracts were canceled, apartments linger on the market for 60 days.
Source: Redfin.
