A surge in available listings and shifting economic concerns drove the highest February cancellation rate on record.
By yourNEWS Media Newsroom
Home purchase agreements across the United States fell apart at an unprecedented rate in February, with 13.7 percent of pending sales canceled, totaling more than 42,000 failed transactions, according to a Redfin report.
The figures mark the highest level recorded for the month since tracking began in 2017, based on multiple listing service data analyzing pending home sales nationwide.
The increase in cancellations is tied to a widening imbalance between sellers and buyers, with available homes significantly outnumbering active purchasers. The report states that the growing supply has given buyers increased leverage, allowing them to reconsider or abandon agreements more freely.
“There are hundreds of thousands more home sellers than buyers in the country, a near-record gap that gives buyers options and negotiating power,” the report states.
The data shows that buyers are frequently exiting contracts during inspection periods, either due to issues identified with the property or because they identify alternative homes that better meet their preferences or budgets.
In some cases, buyers are withdrawing without completing initial financial steps tied to the transaction.
Juan Castro, a Redfin Premier agent based in Orlando, Florida, said contract cancellations are occurring frequently across the market.
“homes are falling out of contract right and left,” Castro said, adding that some buyers submit offers but do not follow through with deposits due to concerns about affordability or uncertainty about property conditions.
“I’m also seeing buyers negotiate aggressively—for instance, maybe they ask for a brand-new roof because three shingles are missing on an otherwise perfectly good roof—then cancel the deal if the seller says no,” he said.
The report also links buyer hesitation to broader economic and global developments, stating that concerns about job stability, inflation, and international conflict are influencing financial decisions.
“Many Americans are concerned about job security, inflation, the Iran war, and other world events that can make their finances feel shaky,” the report states.
Changes in mortgage rates have also contributed to uncertainty. Buyers may begin the purchasing process under one rate environment but face higher rates by the time they finalize loan terms. As of March 19, Freddie Mac reported the average 30-year fixed mortgage rate at 6.22 percent, with 15-year rates at 5.54 percent.
Regionally, Tampa, Florida recorded the highest cancellation rate among major metropolitan areas at 18.1 percent. San Antonio, Texas, and Atlanta, Georgia followed at 17.9 percent, while Jacksonville, Florida posted 17.5 percent and Fort Worth, Texas recorded 17.3 percent.
The data shows that in Tampa, the number of sellers exceeded buyers by 84 percent in February, while San Antonio recorded a seller surplus of more than 50 percent.
In contrast, California’s high-cost markets reported lower cancellation rates. San Francisco, San Jose, and Oakland ranged from 3.7 percent to 7.7 percent. Nassau County, New York recorded a 4.5 percent cancellation rate, and Milwaukee, Wisconsin saw 7.5 percent.
Some markets saw year-over-year increases in cancellations. Los Angeles rose from 12.1 percent in February 2025 to 15 percent this year. Virginia Beach increased from 11.9 percent to 14.7 percent, while Boston climbed from 8.2 percent to 10.8 percent.
The data reflects shifting conditions in the housing market, where increased inventory and economic uncertainty are contributing to a higher rate of abandoned purchase agreements.
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