H
ome‑buying and selling are hitting a rough patch, with more contracts being called off and many listings pulled back, according to three fresh reports. Buyers are turning away mainly because of repair problems and financing hurdles, while sellers are retreating from the market, hoping conditions will improve before re‑listing. The condo sector, however, shows a bright spot where sellers outnumber buyers by roughly 72%.
The latest data underline the market’s unease. In August, Redfin recorded about 56,000 purchase agreements canceled—15.1% of all contracts that month, the highest August cancellation rate since 2017. Compass economist Mike Simonsen notes that by September, 42.3% of new listings were withdrawn, a steep rise over previous September figures. He estimates that roughly 200,000 sellers who tried to sell this year are waiting for a better climate.
Consumer sentiment mirrors this frustration. Fannie Mae’s September Home Purchase Sentiment Index shows 73% of respondents deem it a “bad time” to buy, while only 27% say it’s a “good time.” Conversely, 57% feel it’s a favorable time to sell, down from 65% a year earlier. Redfin’s chief economist Daryl Fairweather points out that some sellers—particularly those downsizing to cash‑purchased condos—are still thriving, sidestepping high mortgage rates.
Sellers pulling listings have a dual effect: they reduce supply and, because many of those sellers are also prospective buyers, they dampen demand. Simonsen warns that this could keep the market sluggish until the spring, when many of these sellers may return. “Withdrawals reflect frustrated sellers, not just idle inventory,” he says. “They’ll likely try again in 2026.”
Why are buyers canceling? Redfin’s October 7 report shows that 70.4% of cancellations stem from repair issues, with financing problems and the buyer’s inability to sell their current home following closely. Even when sellers go above and beyond—such as covering $15,000 in pool repairs—buyers sometimes still back out, leaving sellers disappointed.
Economic uncertainty compounds the problem. Selma Hepp, chief economist at Cotality, describes the market as a crossroads where mortgage rates, inventory shifts, local dynamics, and policy decisions intersect. She stresses that consumer confidence in both the market and personal finances is essential before demand can rebound.
In short, cancellations and withdrawals are rising, sellers are pulling listings, and demand is weakening—except in the condo market, where sellers still have an edge. The outlook hinges on whether economic conditions stabilize and buyers regain confidence.
