Homebuyers canceled their purchase agreements at the highest rate on record in December, another signal of a housing market mired in uncertainty.
More than 40,000 home-purchase agreements were canceled in December, equal to 16.3% of homes that went under contract during the month, the national brokerage Redfin said in an analysis published Jan. 26.
Redfin’s records only date back to 2017, but that period includes March 2020, when a panicked world plunged into COVID-19 lockdowns. December's tally just barely topped that month.
“High housing costs and rising inventory have made homebuyers more selective,” said Chen Zhao, head of economics research at Redfin, in a statement. “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.”
In 2025, there were even fewer home resales than in 2024, which was the lowest on record going back to 1995. Observers blame a combination of high mortgage rates and prices, sellers reluctant to accept that they’d missed the top of the market and price accordingly, and buyers skittish about the economy and commitment.
