The Highest Cancellation Rate Redfin Has Ever Recorded
16.3% of U.S. home-purchase agreements fell through in December 2025, roughly 40,000 deals nationwide, marking the highest cancellation rate for any month since Redfin began tracking this data in 2017, according to Redfin’s own report. That’s up from 14.9% the December before, and it pushed cancellations to what CNBC described as the fastest pace homebuyers have backed out of signed deals in nearly a decade.
Inspection Contingencies Are the Formal Reason. Affordability Is the Real One
Buyers most often cite inspection findings as the reason they’re walking away, but according to Redfin’s research, affordability worries are frequently what’s actually driving the decision underneath that paperwork trail. “High housing costs and rising inventory have made homebuyers more selective,” said Chen Zhao, head of economics research at Redfin, in the company’s own report.
Not Just Cold Feet: Economic Anxiety Is a Named Factor
Alin Glogovicean, a Redfin Premier agent in Los Angeles, said in comments included in the company’s coverage that more buyers are second-guessing the wisdom of making a huge purchase when there’s a fear in the back of their mind about the state of the economy, citing layoff anxiety, tariff concerns, and general geopolitical unease.
Where Buyers Are Walking Away Most
The pattern is sharply regional. San Antonio posted the highest cancellation rate in the country at 21.2%, trailed by Atlanta at 18.5% and Cleveland at 17.9%, with Riverside, California, and Orlando both topping 17%. San Francisco sat at the opposite end at just 3.5%, a gap that reflects how much more competing inventory Sun Belt buyers have compared with tight coastal markets.
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