13.7% of US Pending Home Sales Were Canceled in January
Nearly 40,000 US home-purchase agreements were canceled in January, equal to 13.7% of homes that went under contract during the month, according to an analysis of pending-sales data by Redfin.
The number of cancellations was up 13.1% year-over-year, marking the highest January share since Redfin began tracking the data in 2017. The firm noted the data is seasonal, which is why January is compared with prior Januarys.
Redfin attributed the higher cancellation rate largely to buyer-friendly market conditions. Financial uncertainty is also contributing to the trend. Although housing costs have declined from their peak, they remain near historic highs, and some buyers are reconsidering purchases amid concerns about layoffs, tariffs, and geopolitical tensions.
Among major US metros, San Antonio recorded the highest share of canceled contracts in January, with 21.2% of pending home sales falling through. Atlanta followed at 18.5%, Cleveland at 17.9%, Riverside, CA, at 17.5%, and Orlando at 17.3%.
San Francisco reported the lowest cancellation rate among the 47 major metros analyzed, at 3.5%.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.