More Buyers Walk Away as Home Cancellations Tick Up in April

With concerns over the state of the housing market, some homebuyers are pulling back. According to a recent report from real estate marketing platform Redfin, 56,000 U.S. home purchases were canceled in April, which is about 14.3% of homes that went under contract during the month. By comparison, cancellations accounted for 13.5% of home-purchase agreements in April the prior year.

There’s a number of reasons why homebuyers could be pulling out of deals. With the ongoing threat of tariffs, layoffs, and other economic challenges, some homebuyers may be changing their mind about purchasing a home altogether. Others are likely backing out for personal reasons or to buy another home. This is especially true in markets where inventory is growing and buyers have the upper hand.

Of the 10 metros with the highest cancellation rates, five are in Florida and two are in Texas. The two states have been building more homes than anywhere else in the country, prompting some buyers to back out of deals because they’re confident they will be able to find a different home that works better for them. Florida has more homes for sale than ever before. Some buyers in the Sunshine State are also getting cold feet due to increasing natural disasters and soaring insurance and HOA fees.