The U.S. housing market has shifted recently—this time in favor of buyers. According to the real estate firm Redfin Corp., a record of 16.31% of homes under contract in December of 2025 were cancelled—the highest rate since they began tracking in 2017. Redfin’s data shows that buyers have significant leverage with sellers outnumbering them by a 47% margin. This allows buyers to be selective and walk away from buying property, be it due to high costs, better options, or seller inflexibility.
Nevertheless, affordability remains a core challenge, with a recent report from ATTOM, a property data and real estate analytics firm, noting that 99% of counties examined nationwide saw the median single-family home and condo become less affordable in 2025’s fourth quarter compared to that of 2024. This remains true even as mortgage rates have dropped from recent highs in 2025 (albeit remaining higher compared to recent years) on top of the increasing obstacle that is the surge in homeowners’ insurance cost. With home price growth doubling wage growth, home buying power in 2026 is dependent on more than just whether prices level off or decline, but also on broad economic conditions.
Ultimately, it’s a buyer’s market—but only for those who can afford to enter it.
