Summary
In January, about 40,000 U.S. home-purchase deals were canceled, the highest recorded for that month since 2017. Real estate company Redfin reported this increase in cancellations, suggesting it is due to more sellers than buyers, which gives buyers the chance to cancel deals more easily.
Key Facts
- About 40,000 home-purchase agreements in the U.S. were canceled in January.
- This is the highest cancellation rate for January since tracking began in 2017.
- Redfin reported that 13.7% of homes under contract fell out of escrow in January.
- The increase in cancellations is linked to a market with more sellers than buyers.
- Financial worries, including housing costs and job concerns, have contributed to cancellations.
- San Antonio had the highest cancellation rate among large cities at 21.2%.
- San Francisco had the lowest cancellation rate at 3.5%.
- Redfin says the market has been buyer-friendly since mid-2024 due to the gap between sellers and buyers.
