Home Sale Cancellations Hit Record High Amid Market Shifts

Challenges within the housing market and the broader economy are significantly impacting home sales. In December, over 40,000 signed home purchase agreements were canceled, according to real estate brokerage Redfin.

This figure represented 16.3% of all homes that went under contract, marking an increase from 14.9% in December 2024 (presumably the prior year).

This percentage also represents the highest share recorded since Redfin began tracking this metric in 2017.

Chen Zhao, head of economics research at Redfin, provided insight into the trend. He stated that increased housing costs and rising inventory have contributed to homebuyers becoming more selective.

Zhao further noted that home sellers currently outnumber buyers by a record margin. This shift provides active buyers with more options, potentially leading them to withdraw from contracts if they identify a more suitable or affordable home.