Buyer Demand Ticks Up
by Dana Anderson, Redfin
Just over 47,000 U.S. home-sale agreements fell through in April, equal to 13.4% of homes that went under contract that month. That’s down incrementally (-0.1 percentage points) from a month earlier, according to a report from Redfin, the real estate brokerage powered by Rocket.
It’s also tied with January for the lowest level of contract cancellations since September 2024, though the level has varied by less than half a percentage point over the last year and a half.
This is based on a Redfin analysis of MLS pending-sales data. The data is seasonal, which is why this April is compared to past Aprils.
Contract cancellations inched down this spring as homebuyers and sellers gain a clearer sense of housing market conditions after several years of volatility. More sellers have come to terms with the fact that it’s a buyer’s market in most of the country, and they’re increasingly willing to lower prices and/or provide concessions to keep deals together. Buyers, for their part, have grown more accustomed to high housing payments, with pending home sales rising, and may be less likely to back out due to sticker shock when they see their final monthly payments.
Additionally, the average 30-year fixed mortgage rate declined for three straight weeks in April, giving some buyers confidence in locking in a rate. Note that mortgage rates bounced back up in May.
Still, home-purchase agreements are falling apart at a higher rate than they were in late 2020, 2021 and early 2022, when it was a hot seller’s market. That’s because there are more home sellers than buyers in the market, giving buyers the option to back out during the inspection period if they find a house they like better. Some buyers are also changing their minds because of widespread economic uncertainty, including concerns about job security and the Iran war.
“We’re seeing some buyers cancel purchase agreements, but no more than usual, and when buyers do back out it’s typically because of post-inspection repair costs and appraisals,” said Timothy Hourigan, a Redfin Premier agent in Syracuse, NY. “Buyers are generally committed because supply is tight enough that they’re excited to find a home they love in their price range. In places like Syracuse, where homes are affordable compared to nearby big cities, bidding wars are more common than backing out.”
Cancellations Are Most Common in Atlanta and Other Sun Belt Markets
In Atlanta, nearly one in five (19.3%) home-purchase agreements were canceled in April, the highest share among the 50 most populous U.S. metros. It’s followed by four other Sun Belt metros: San Antonio (18.9%), Fort Worth, TX (17.6%), Tampa, FL (17.4%) and Phoenix (17%).
Buyers are more likely to back out of homebuying deals in Texas, Florida and other Sun Belt metros than other parts of the U.S. largely because they’re major buyer’s markets.
To view the full report, please visit: www.redfin.com/news/contract-cancellations-april-2026
