US Homebuyers Cancel Purchase Agreements at Record December Rate

On Monday, Redfin reported that about 40,000 US home-purchase agreements were canceled in December 2025, based on an analysis of its pending-sales data, representing 16.3% of homes that went under contract during the month.

The cancellation rate rose from 14.9% in December 2024 and marked the highest December level in records dating back to 2017, Redfin said.

Redfin noted that buyers often use inspection contingencies to exit deals. While cancellations may be triggered by issues uncovered during inspections, the firm said affordability concerns, including high mortgage payments, frequently play a role.

“High housing costs and rising inventory have made homebuyers more selective,” Redfin Head of Economic Research Chen Zhao said. “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.”