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In April, roughly 47,000 U.S. home-purchase agreements were canceled, equal to 13.4% of homes that went under contract. That was down slightly from March on a seasonally adjusted basis.
According to Redfin, April tied January for the lowest level of contract cancellations since September 2024.
Here are the other key takeaways from Redfin’s report:
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Sellers are becoming more realistic. Redfin says more homeowners are lowering prices and offering concessions to keep deals from falling apart in today’s buyer-heavy market.
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Buyers appear more adjusted to today’s affordability reality. Pending home sales increased in April, and buyers may be less likely to walk away because of payment shock than they were earlier in the rate cycle.
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Mortgage rates briefly helped boost confidence. The average 30-year fixed mortgage rate declined for three straight weeks in April before climbing again in May.
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Sun Belt markets continue seeing the most canceled deals. Atlanta posted the nation’s highest cancellation rate at 19.3%, followed by San Antonio (18.9%), Fort Worth (17.6%), Tampa (17.4%), and Phoenix (17%).
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Contract cancellations remain far below Sun Belt levels in supply-constrained markets. San Francisco had the nation’s lowest cancellation rate at just 2.8%, helped by strong housing demand tied to the AI boom.
MY TAKE
We’re not out of the woods yet, but this is encouraging news, especially after the spike in cancellations we saw earlier this year. Buyers are still cautious, but they’re no longer reacting with the same level of fear and uncertainty that defined much of the last two years. Sellers, meanwhile, are slowly realizing that aggressive pricing and inflexibility don’t work in a market where buyers have choices.
Until Next Week,
Ken
P.S. Zillow's 'Zestimate' and other algorithm-based home value models are extremely helpful but I would not recommend betting on them to always be on the mark. Would you like a bonafide 'Bulls-Eye' Comparative Market Analysis on your home? Completed by me actually doing the work and researching your home's comparable sales on the MLS? If so, just call/text/email me and consider it done. 951-760-3833. No obligation (of course).
P.P.S. If you're looking to sell your home in the near future, my book, 'SELLING SECRETS YOU CAN'T AFFORD TO MISS' needs to be in your hands. I can promise you it will add thousands of dollars to your bank account when selling your home if you follow the advice in the book. You can check it out here ... www.KensSellingSecrets.com.
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