If you've been house hunting in Rhode Island lately and feel like the market is shifting beneath your feet, you're not imagining things. A new report from real estate brokerage Redfin reveals a surprising trend: homebuyers nationwide are canceling 14.5% of deals that went under contract in September and buyers in our region are walking away, too.
In the Boston metro area, which includes Rhode Island housing market data, pending home sales fell 10.7 percent in September compared with a year earlier. At the same time, the 14.5% cancellation rate nationwide represents about 1 in every 7 deals, with only March and April 2020 recording higher readings during the pandemic's opening shock.
This isn't just a blip. It's part of a broader housing slowdown driven by rising mortgage rates, high home prices, and a market where buyers suddenly have more negotiating power than they've had in years. Let's break down what's happening and what it means if you're buying or selling a home in Rhode Island.
Why Are So Many Buyers Walking Away?
The reasons are straightforward: affordability and options.
As of October 23, 2026, the 30-year fixed rate stands at 7.30%, (according to Mortgage News Daily.) When borrowing costs climb that high, monthly payments surge, and buyers who were pre-qualified at lower rates suddenly find themselves priced out or stretched too thin.
But there's another side to this story.
Pending home sales fell 4% from August to September nationally, the biggest monthly drop in more than three years, and inventory has climbed to levels not seen since early in the pandemic. That gives buyers breathing room—and choices.
Buyers may walk away because of inspection problems, unexpectedly high monthly payments, or a change of mind, Redfin notes. When there are more homes on the market and less competition from other buyers, it's easier to step back from a deal that doesn't feel quite right and keep looking.
Chen Zhao, Redfin's head of economic research, summed it up plainly:
"It's not surprising that when rates climb above 7%, fewer people buy homes because fewer people can afford them."
What's Happening in the Boston Metro Area (Including Rhode Island)
The Boston metro area, where Rhode Island's housing data is often grouped, tells a similar story.
Pending home sales fell 10.7% in September compared with a year earlier. That's a steeper drop than the national average, signaling that our regional market is feeling the squeeze acutely.
At the same time, the median home sale price in the Boston metro area reached $738,305 in September—a 2.5% increase from September 2025, according to the source article. The number of homes available for sale rose 3.1% from a year earlier, while closed home sales increased just 1.2%.
Translation: There are more homes to choose from, prices are still climbing (though more slowly), and fewer deals are making it to the finish line.
Buyers in Rhode Island, like those across the region, are facing a two-sided coin. More inventory means less competition, which opens the door to negotiating on price, asking for repairs, or requesting that the seller cover closing costs or even buy down the mortgage rate. But those high borrowing costs remain a stubborn obstacle to affordability, no matter how much room there is to negotiate.
The Markets Where Buyers Are Backing Out Most (and Least)
Jacksonville recorded the highest cancellation rate among major US metropolitan areas at 19.9%, followed by Tampa at 18.8%, Las Vegas at 18.6%, and San Antonio at 18.5%. These are strong buyer's markets where inventory is high and competition is low, giving buyers plenty of reasons—and opportunities—to walk.
On the other end, San Francisco's cancellation rate reached just 2.8%. Nassau County, New York; San Jose, California; Montgomery County, Pennsylvania; and New York City also posted cancellation rates below 8%, per the article. In these markets, homes remain in high demand relative to supply, so buyers have less room to reconsider once they're under contract.
The Boston metro area's 11.4% cancellation rate, as reported in the source article, falls somewhere in the middle—lower than the national average but still elevated compared to pre-pandemic norms.
What Slowing Sales Could Mean for Prices
Here's where it gets interesting for anyone thinking about buying or selling soon.
Chen Zhao said reduced competition gives buyers more room to negotiate prices, closing costs, and repairs, with some sellers also paying for rate buydowns. That's already happening: nationally, about three in five homes sold for less than their original asking price in September, and nearly one in five sellers with active listings cut their asking prices, according to the article.
Zhao also offered this outlook: "Slow sales also mean prices may flatten or fall in the not-so-distant future," according to the source article.
For buyers, that's cautiously good news. If you can afford the monthly payment at today's rates, you may have more negotiating leverage than you've had in years, and you may be buying before prices soften further.
For sellers, it's a reality check. The days of multiple offers over asking price are fading in many parts of the market. Pricing realistically from the start and offering flexibility—whether that's covering some closing costs, making agreed-upon repairs, or helping with a rate buydown—can make the difference between a sale and a stale listing.
What This Means for Rhode Island Buyers and Sellers
So what does all this data mean if you're navigating the Rhode Island housing market right now?
If you're buying: You have more options and more power than you did a year ago. Inventory is higher, competition is lighter, and sellers are increasingly willing to negotiate. That said, affordability remains the biggest hurdle. At 7.30% for a 30-year fixed mortgage (per Mortgage News Daily as of October 23, 2026), monthly payments are significantly higher than they were even a year ago. It's worth exploring all your financing options, including whether a seller might be willing to contribute toward a mortgage rate buydown or cover closing costs to make the numbers work.
Don't be afraid to walk away from a deal that doesn't check all your boxes. The fact that cancellations are rising isn't a sign of chaos—it's a sign that buyers are being selective and protecting their interests. A thorough home inspection, a clear-eyed look at your budget, and honest conversations with your agent about what you truly need can help you avoid buyer's remorse down the road.
If you're selling: This is not the market to overprice your home and hope for the best. With pending sales down and inventory up, buyers have choices—and they're using them. Price your home based on recent, comparable sales in your area, not on what you wish it would sell for or what a neighbor's home listed for six months ago.
Flexibility matters. If you can offer to cover some closing costs, make necessary repairs before listing, or even help with a rate buydown, you'll stand out in a market where buyers are stretched thin. And if your listing sits without serious interest for more than a couple of weeks, be ready to adjust. Waiting too long to make a price correction can cost you more in the long run than pricing competitively from day one.
The good news? People still need to move. Job changes, growing families, downsizing, relocating—life goes on, and homes still sell. The key is meeting the market where it is, not where it was.
A Market Built for the Long Haul
Markets shift. Rates rise and fall. Inventory tightens and loosens. What doesn't change is the value of working with someone who knows the local landscape, understands the data, and has your back through every step of the process.
At Slocum Home Team, we've been helping Rhode Island buyers and sellers navigate all kinds of markets—hot, cool, and everything in between. Whether you're trying to figure out if now is the right time to buy, how to price your home to actually sell, or what your options are in a shifting market, we're here to walk through it with you.
We're not here to pressure you into a decision that doesn't feel right. We're here to give you the information, the insight, and the support you need to make the choice that's right for you and your family.
If you have questions about what's happening in the Rhode Island market—or if you're ready to take the next step—reach out. Call us at (401) 372-8976, email Hello@SlocumHomeTeam.com, or visit slocumhometeam.com. Let's figure this out together.
