With Buyers Firmly in the Driver's Seat, Home-Purchase Cancellations Hit Highest Level in Nearly 3 Years

Rhea-AI Summary

Redfin (NASDAQ:RDFN), powered by Rocket (NYSE:RKT), reports that 14% of U.S. home-sale agreements that went under contract in July were canceled, the highest seasonally adjusted share since November 2023 and slightly above June’s 13.7%. Contract cancellations have hovered between roughly 13% and 14% over the past four years, but are higher than in the 2020–2022 seller’s market.

Redfin links the uptick to a strong buyer’s market, with a record low number of buyers and about 51% more sellers than buyers, plus affordability pressures from high prices and elevated mortgage rates. Cancellations are most common in buyer-friendly metros such as Atlanta (19.8%) and Houston (19.6%), and least common in Nassau County, NY (3.5%) and Bay Area markets like San Francisco (4.1%) and San Jose (6.5%).

Market Context

Recent Redfin-related reports were followed by -3.98% and -3.48% 24-hour reactions, adding a cautiou...

Analysis

Recent Redfin-related reports were followed by -3.98% and -3.48% 24-hour reactions, adding a cautious historical frame to this cancellation report. RKT’s active S-3ASR registration is an additional financing-capacity risk to monitor.

Key Figures

Canceled home-sale agreements: 14% Prior-month cancellation rate: 13.7% Seller-to-buyer imbalance: 51% more sellers than buyers +5 more

8 metrics

Canceled home-sale agreements 14% July, seasonally adjusted; highest share since November 2023

Prior-month cancellation rate 13.7% June comparison

Seller-to-buyer imbalance 51% more sellers than buyers U.S. market in July

Atlanta cancellations 19.8% July home-purchase agreements

Houston cancellations 19.6% July homebuying contracts

San Antonio cancellations 18.7% July home-purchase agreements

Las Vegas cancellations 18.6% July home-purchase agreements

Nassau County cancellations 3.5% July homebuying deals

Historical Context

5 past events · Latest: Aug 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 20	Partnership announcement	Neutral	-4.0%	AAF student advertising competition sponsorship announced
Aug 20	Housing market report	Neutral	-4.0%	Redfin reported higher listings and weaker pending home sales
Aug 18	Home price report	Neutral	-3.5%	Redfin reported July home prices were nearly unchanged monthly
Aug 17	Leadership change	Neutral	-1.7%	Sarah Watterson appointed as an independent board director
Aug 17	Housing affordability report	Neutral	-1.7%	Redfin reported housing and childcare costs exceeded half of income

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Each of the five listed recent events was followed by a negative 24-hour price reaction.

Key Terms

seasonally adjusted

1 terms

seasonally adjusted financial

"highest share in nearly three years on a seasonally adjusted basis"

Seasonally adjusted means that figures have been modified to remove the effects of regular and predictable changes that happen at specific times of the year, such as holidays or weather patterns. This adjustment helps reveal the true underlying trend by making comparisons across different periods more accurate. For investors, it provides a clearer picture of whether economic activity is genuinely improving or declining, without the noise of seasonal fluctuations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Redfin reports 14% of U.S. homebuying deals fell through in July, the highest share since November 2023, as buyers gained more power

SEATTLE, Aug. 21, 2026 /PRNewswire/ -- Nationwide, 14% of home-sale agreements that went under contract in July fell through—the highest share in nearly three years on a seasonally adjusted basis and up from 13.7% a month earlier. That's according to a new report from Redfin, the real estate brokerage powered by Rocket.

While the rate of contract cancellations reached a nearly three-year high in July, the increase from months and years past is small. The share of U.S. homebuying deals that have fallen through has posted small swings, from about 13% to about 14%, for the last four years. Deals are falling through at a higher rate than in 2020-2022, when the U.S. was in a hot seller's market.

This is based on a Redfin analysis of seasonally adjusted MLS pending-sales data. Please note: Homes that fell out of contract during a given month didn't necessarily go under contract that same month.

Contract cancellations are rising a bit because buyers have the power: The number of U.S. homebuyers dropped to a record low in July, and there were a near-record 51% more sellers than buyers in the market. That gives house hunters more options and makes them more likely to walk away if an inspection uncovers problems, an appraisal comes in low or the seller doesn't agree to concessions.

Affordability challenges are making buyers more cautious, too. Home prices remain high and mortgage rates are elevated, leaving many buyers with little financial wiggle room.

"Sometimes buyers get cold feet before the inspection—they revisit the numbers with their lender, get anxious about the payment and never even send the deposit," said Juan Castro, a Redfin Premier agent in Orlando. "Other times, they'll find something relatively minor in the inspection and use it as leverage to ask for major concessions or walk away entirely. Buyers know they have options right now, so they're pushing harder in negotiations. That can be tough for sellers, but it's good news for buyers."

The Silver Lining: Canceled Deals Can Create Opportunities For Sellers and Buyers

For sellers, preparation can reduce the odds of a deal falling apart. One option is to complete a home inspection before listing, which can flag issues that might otherwise surprise a buyer later. Sellers may also consider pre-marketing their home with Redfin Early Access to gauge the market and set the right price from the beginning.

A cancellation can also create an opening for other house hunters. A home that comes back on the market may face less competition, and the seller may be more motivated to reach an agreement the second time around. Buyers who lose out on a home they love can also ask their agent to officially put them in the backup position; if the first deal falls apart, they get another shot without having to start from scratch.

Home-Purchase Cancellations Are Most Common Where Buyers Have the Upper Hand

Deals are falling apart at the highest rate in the South. In Atlanta, 19.8% of home-purchase agreements were canceled in July, the highest share among the 50 most populous U.S. metros with sufficient data.

Next comes Houston, where 19.6% of homebuying contracts fell through. It's followed by San Antonio (18.7%), Las Vegas (18.6%) and Orlando, FL (18.2%). Contract cancellations are most prevalent in those places partly because they're among the strongest buyer's markets in the country. In Houston, for instance, there are 130% more sellers than buyers.

Many of those southern metro areas were popular during the pandemic, when low mortgage rates and remote work encouraged many Americans to move to relatively affordable places. Now, higher costs, a glut of newly built homes and the increasing frequency of natural disasters, among other factors, have left a lot of homes sitting on the market.

Homebuying Deals Are Least Likely to Fall Apart in Long Island and the Bay Area

Contract cancellations were least common in Nassau County, NY in July, with just 3.5% of homebuying deals falling through.

Next come two Bay Area metros: San Francisco and San Jose, where 4.1% and 6.5% of deals fell apart, respectively. San Francisco's housing market is booming, largely because of AI companies paying their workers high salaries and bonuses, making buyers less likely to back out when they go under contract.

Next are Montgomery County, PA (7.3%) and Milwaukee (7.7%). Nassau County, Montgomery County and Milwaukee are three of just six seller's markets in the U.S.; buyers in those places are more motivated to hold deals together because there are fewer homes available to choose from, and sellers hold the power.

To view the full report, including a chart and additional metro-level data, please visit: redfin.com/news/contract-cancellations-july-2026 

About Redfin 
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/with-buyers-firmly-in-the-drivers-seat-home-purchase-cancellations-hit-highest-level-in-nearly-3-years-302856984.html

SOURCE Redfin

FAQ

What did Redfin report about U.S. home-purchase cancellation rates in July 2026 and how might it relate to RKT?

Redfin reported that 14% of U.S. home-sale agreements went under contract and then fell through in July 2026, the highest share since November 2023. According to Redfin, this reflects a buyer-favoring market, which can influence demand dynamics relevant to housing and mortgage-focused companies such as RKT.

Why are more U.S. home-purchase contracts falling through according to Redfin and Rocket data?

More contracts are falling through because buyers currently hold more leverage and face tight affordability. According to Redfin, there were about 51% more sellers than buyers in July, and elevated home prices plus high mortgage rates leave buyers with little financial flexibility, increasing cancellations.

Which U.S. housing markets had the highest home-purchase cancellation rates in July 2026?

The highest cancellation rates occurred in major Southern and Sun Belt metros. According to Redfin, Atlanta led with 19.8% canceled deals, followed by Houston at 19.6%, San Antonio at 18.7%, Las Vegas at 18.6%, and Orlando at 18.2%, all characterized as strong buyer’s markets.

Where were home-purchase contracts least likely to fall apart in July 2026?

Contracts were most likely to hold together in select seller’s markets. According to Redfin, Nassau County, NY had just 3.5% cancellations, followed by San Francisco at 4.1%, San Jose at 6.5%, Montgomery County, PA at 7.3%, and Milwaukee at 7.7%, where limited inventory keeps buyers committed.

How does the July 2026 home-purchase cancellation rate compare with previous years?

The July 2026 cancellation rate of 14% is slightly above recent months and years, but still within a narrow band. According to Redfin, U.S. cancellation shares have fluctuated between roughly 13% and 14% for four years, yet remain higher than during the 2020–2022 hot seller’s market.

How can buyers and sellers respond to rising home-purchase cancellations highlighted in the Redfin and Rocket report?

Buyers can use increased leverage to negotiate repairs or concessions and consider backup offers. According to Redfin, sellers may reduce cancellation risk by ordering pre-listing inspections, pricing accurately, and using tools like Redfin Early Access to test demand and set appropriate expectations in today’s buyer-tilted market.