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By Giulia Carbonaro
Senior Reporter
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One in seven home sales fell through last month, according to recent data released by Redfin, for a total of roughly 56,000 purchase agreements scrapped by buyers across the country.
It was the second-highest rate of cancellations for the month of April since the real estate brokerage started keeping records in 2017, beaten only by April 2020, when the COVID-19 pandemic brought the U.S. housing market to a halt.
Why It Matters
Spring is normally the busiest time of the year for the U.S. housing market, but historically high mortgage rates and growing uncertainty over the future of the U.S. economy have put a dampener on demand, keeping many aspiring homebuyers on the sidelines.
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While active listings are finally growing after years of chronic shortages and are now at the highest level since 2019, many homes are sitting idle on the market, as buyers cannot afford the purchase or are being cautious about making such a big move at such an unpredictable time for the country. The result is that this year's homebuying season, which many experts expected to be good, is struggling to pick up.
What To Know
The sales of about 14.3 percent of all U.S. homes that went under contract last month were canceled, according to Redfin, up from 13.5 percent a year earlier.
Atlanta had the highest rate of cancellations in the country (20 percent), followed by Orlando, Florida (19.4 percent), Tampa, Florida (19.1 percent), Riverside, California (19.1 percent), and Miami (18.9 percent).
At the bottom half of the top 10 were Fort Lauderdale, Florida (18.9 percent), Fort Worth, Texas (18.7 percent), Las Vegas (18.6 percent), Jacksonville, Florida (18.4 percent) and San Antonio, Texas (18.2 percent).
Florida and Texas dominate the list, as the two states have seen some of the biggest surges in inventory after having built the most new homes in recent years. According to Redfin, Florida has more homes for sale now than ever before.
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These are staggering numbers for April, a month when homebuyers should be flocking to the market, snatching away the homes they want. But that is not what is happening this year.
While inventory is growing across the country, prices are still rising at the national level. In April, the median sale price of the typical U.S. home was 1.4 percent higher than a year earlier, at $438,466.
Adding to the rising cost of housing are monthly mortgage payments. Last month, mortgage rates were hitting an average rate of 6.73 percent—more than double the pandemic record low. Experts expect rates to remain between 6 and 7 percent throughout 2025 and 2026.
With elevated mortgage rates and rising prices still chipping away at affordability in the U.S. housing market and President Donald Trump's administration's sweeping tariffs fueling fears of an incoming recession, many Americans are growing less confident about buying a home this year. A survey conducted by Redfin in April found that 24 percent of prospective buyers are scrapping plans to make a major purchase like a home this year due to tariffs.
While a rise in cancellation rates is discouraging news for sellers, it is good news for the buyers in the market who now have more options and more negotiating power, which may enable them to get significant price reductions. Homebuyers are not only canceling because they are growing more cautious, but also because they may be spotting a better opportunity somewhere else on the market.
According to Redfin, "some house hunters are backing out during the inspection period because a better house has or might come along."
However, Americans are just not buying as many homes as they have for the past few years. Sales in April were down 2.9 percent year-over-year at the national level, according to Redfin, for a total of 415,085 homes sold. Existing home sales were down 2 percent year-over-year in April, according to data from the National Association of Realtor (NAR), while new home sales were up 3.3 percent.
What People Are Saying
Alison Williams, a Redfin Premier real estate agent in Sacramento, California, said in a press release that some cancellations are favoring buyers: "Two of my buyers have won deals this way—where the previous buyer canceled and then we wrote an offer before the home was even back on the market, and the seller accepted.
"It's a tactic that has been working really well, especially when it's a home my client was already interested in. I will circle back with the listing agent to see if the other buyer is wavering."
Realtor.com senior economist Jake Krimmel said in a statement shared with Newsweek: "Growing new home sales may seem a bit surprising given affordability concerns in the housing market, but these results are also a continuation of the trend we have seen in new home sales in recent months, in which less expensive homes are driving sales activity.
"The median sales price of new houses sold in April 2025 was $407,2000—essentially flat since last month, but about 2 percent below last April. The share of homes sold for under $400,000 increased yet again on a year-over-year basis. Affordable new builds are the catalyst for growth in the new home segment."
NAR chief economist Lawrence Yun said of falling existing home sales in a statement shared with Newsweek: "Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand."
What Happens Next
Though it may not feel like it, Americans are now in a buyer's market where they have a clear advantage over sellers. While experts think that prices will remain high in the Northeast and other areas where the housing shortage is still acute, the South and other regions are likely to face significant drops.
Redfin now expects home prices to dip by 1 percent across the country by the end of the year.
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