Redfin: 13.7% of Home-Sale Agreements Fell Through in February

(Image courtesy of Aliaksei Semirski/pexels.com)

Redfin, Seattle, found 42,000 U.S. home-sale agreements fell through in February, equal to about 13.7% of homes that went under contract that month. That’s a record for February in data going back to 2017.

In February 2025, 12.8% of home sales fell through. The data is seasonal, Redfin noted.

Currently it’s a buyer’s market, making buyers more comfortable about backing out during an inspection period or due to an issue. They know there will be plenty of other homes on the market. And, geopolitical and economic conditions have fomented uncertainty, the report noted.

Tampa, Fla., is seeing the highest rate of cancellations, with 18.1% of home-purchase agreements cancelled in February. Next is San Antonio, at 17.9%, Atlanta, also at 17.9%, Jacksonville, Fla., at 17.5% and Fort Worth, Texas, at 17.3%.

Cancellations are lowest in San Francisco, at 3.7%, Nassau County, N.Y., at 4.5%, San Jose, Calif., at 5.4%, Milwaukee, at 7.5%, and Oakland, Calif., at 7.7%. Both Nassau County and Milwaukee are in the top five seller’s markets in the U.S.–meaning supply is tight and buyers may not be assured of finding a different home if they back out of a sale.

Cancellations increase the most in Los Angeles, to 15% compared with 12.1% in February 2025. Virginia Beach, Va., was at 14.7% compared with 11.9% and Boston was at 10.8% compared with 8.2%.