Redfin: December Homebuyer Cancellations at Record High

(Image courtesy of Rola Al Homsi/pexels.com)

Redfin, Seattle, found in a new analysis that more than 40,000 home-purchase agreements were canceled in December, equal to 16.3% of homes that went under contract in the month.

That’s up from 14.9% in December 2024 and the highest rate in records going back to 2017.

“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.”

Other buyers may back out due to issues discovered during inspections, Redfin noted.

Broken down by metro area, Atlanta saw the highest rate of purchase cancellations, with 22.5% cancelled in December. That’s up from 19.6% in the area in November.

Next was Jacksonville, Fla., at 20.6%, San Antonio, also at 20.6%, Cleveland, at 20.2% and Tampa, Fla., at 19.4%.

Cancellations were least common in Nassau County, N.Y., at 3.8%, San Francisco, at 4.2%, San Jose, Calif., at 8.9% and New York, at 10.5%.

But, San Jose, Calif., actually saw the largest annual increase in home purchase cancellations, up 6.8 percentage points.