An analysis published by Redfin this week revealed that American homebuyers continue to cancel their purchase agreements, indicating that the real estate market remains mired in uncertainty, even though mortgage rates remain below historic lows.

In this regard, Chen Zhao, Redfin's director of economic research commented that, "high housing costs and increased inventory have made buyers more selective," he said. During the month of December, more than 40,000 home purchase agreements were canceled. “Sellers outnumber buyers by a record margin, which means that interested buyers have options and could back out if they believe they can find a better or more affordable home,” Zhao noted. According to Redfin data, there were fewer home resales in 2025. Market specialists indicate this is due to a combination of high property prices and elevated mortgage rates. Many homeowners are holding off, while prospective buyers continue to assess affordability. In this regard, Joan Rogers, senior associate real estate agent at Windermere Realty Trust in Portland, Oregon, mentioned that buyers and sellers are very far apart. "The market is stagnant. Sellers still believe it should be a seller's market, and buyers believe it should be a buyer's market. Consequently, it's not a market for anyone," she said. For her part, Alison Williams, a real estate agent with Redfin Premier in Sacramento, California, noted that, “Buyers have options and are not afraid to negotiate.” to find the ideal home. If the seller hasn't fixed the maintenance problems or if the house is priced too high, the buyer might back out.”

Redfin highlights in its report that many buyers are indeed using inspection contingencies or purchase agreements as an escape route to cancel their purchase, although their main reason is that they made the mortgage payments are too high.