SEATTLE–Roughly 40,000 U.S. home‑purchase agreements were canceled in December, equal to 16.3% of properties that went under contract that month, according to Redfin.
The figure is the highest December share in Redfin’s records back to 2017, the company said, adding the pullback highlights a market where buyers held more leverage but still wrestled with affordability and uncertainty.
According to Redfin, its analysis of MLS data showed the December cancellation rate rose from 14.9% a year earlier, even as mortgage rates edged down from their 2025 peak and price growth eased.
Redfin further noted that pending home sales overall declined to their lowest level on record outside the onset of the pandemic, leaving both lenders and originators contending with fewer deals and more that failed to reach the closing table.
Sun Belt metros led the trend, while the Bay Area in California also saw a significant rise.
Individual Markets
According to Redfin:
- Atlanta posted the highest share of canceled contracts in December, with 22.5% of pending sales falling through.
- Jacksonville and San Antonio followed at 20.6%, with Cleveland and Tampa also near one in five.
- On the other hand, Nassau County, New York, saw just 3.8% of contracts collapse, with San Francisco at 4.2% and San Jose at 8.9%.
- San Jose registered the biggest year‑over‑year jump in cancellations, up 6.8 percentage points to 8.9%, followed by Oakland and Sacramento.
A ‘Buyer’s Market’
In its analysis, Redfin characterized Atlanta as a fast‑moving buyer’s market, saying sellers there outnumbered buyers by more than 80%.
Redfin said buyers used contingencies to walk away
“High housing costs and rising inventory have made homebuyers more selective,” Chen Zhao, head of economics research at Redfin, said in a statement. “Home-sellers outnumber buyers by a record margin, meaning the buyers who are in the market have options and may walk away if they believe they can find a better or more affordable home.”
Redfin’s analysis found many buyers back out during the inspection period, sometimes citing structural or maintenance issues even when the real concern is the size of the monthly payment.
