- Over 40,000 U.S. home-purchase agreements were canceled in December, equal to 16.3% of homes that went under contract that month—the highest December percentage in records dating back to 2017
- Cancellations were highest in Atlanta (22.5%), Jacksonville (20.6%) and San Antonio (20.6%)
- Cancellations were lowest in Nassau County (3.8%), San Francisco (4.2%) and San Jose (8.9%)
Roughly 40,000 U.S. home-purchase agreements were canceled in December, equal to 16.3% of homes that went under contract that month. That’s up from 14.9% a year earlier and marks the highest December rate in records dating back to 2017.
This is based on a Redfin analysis of MLS pending-sales data. The data is seasonal, which is why we compare this December to past Decembers. Please note that homes that fell out of contract during a given month didn’t necessarily go under contract the same month. For example, a home that fell out of contract in December could have gone under contract in November.
“High housing costs and rising inventory have made homebuyers more selective,” said Chen Zhao, head of economics research at Redfin. “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.”
Buyers frequently back out of deals using the inspection contingency; they may cancel their purchase because a structural issue came up during the inspection, even if their primary reason for canceling is that they realized the mortgage payments are too expensive.
The good news for buyers is mortgage payments have declined recently thanks to a drop in mortgage rates, and price growth is also easing. Redfin economists expect affordability to gently improve in 2026 as wages rise faster than housing costs.