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U.S. Home-Sale Cancellations Hit Record December as Buyers Gain Leverage

Falling mortgage rates could revive activity this spring.

Overview

  • About 40,000 purchase agreements fell through in December 2025, equal to 16.3% of homes under contract and the highest December share in Redfin records back to 2017.
  • Home sellers outnumbered buyers by 47.1% in December, a gap of 631,535 that marked the widest spread since Redfin began tracking the measure in 2013.
  • Redfin attributes the pullbacks to high housing costs and greater choice, with many buyers invoking inspection contingencies or reassessing mortgage affordability.
  • Atlanta posted the highest fallout rate at 22.5%, followed by Jacksonville and San Antonio at 20.6%, Cleveland at 20.2%, and Tampa at 19.4%, while Nassau County and San Francisco recorded sub-5% rates.
  • With pending home sales down 9% from November, economists say the elevated cancellation share points to weaker closed sales in January and February.