US Existing-Home Purchase Cancellations Hit Record February Share

On Tuesday, Redfin reported that more than 42,000 US home-sale agreements were canceled in February, representing 13.7% of all homes that went under contract and the highest February share since records began in 2017.

The cancellation rate rose from 12.8% a year earlier, reflecting a housing market where buyers hold increased leverage amid a widening gap between sellers and buyers. Redfin said elevated inventory and softer demand are giving buyers more flexibility to exit contracts during inspection periods, particularly when alternative properties or repair concerns arise.

Economic and geopolitical uncertainty is also weighing on buyer confidence. Concerns around job security, inflation, and global events, along with mortgage-rate volatility, have contributed to more deals falling through.

Among major metros, Tampa recorded the highest cancellation rate at 18.1%, followed by San Antonio and Atlanta at 17.9%, Jacksonville at 17.5%, and Fort Worth at 17.3%.

San Francisco posted the lowest rate at 3.7%, followed by Nassau County, NY, at 4.5%, San Jose at 5.4%, Milwaukee at 7.5%, and Oakland at 7.7%.