U.S. Home-Purchase Contract Cancellations Reach Record Highs

United States, October 25, 2025

News Summary

In September, the U.S. experienced a 15% cancellation rate for home-purchase agreements, translating to over 53,000 contracts falling through. This rise is attributed to high mortgage rates, steep home prices, and mismatched buyer-seller expectations. Areas such as Tampa and San Antonio are witnessing particularly high cancellation rates, with over one in five deals collapsing. The trend highlights economic uncertainties and changing market dynamics, leading to more selective buying behavior and a potential shift in negotiating power for buyers.

U.S. Home-Purchase Contract Cancellations Reach Record Highs

In September 2023, 15% of home-purchase agreements in the United States fell through, amounting to over 53,000 canceled contracts, according to a recent analysis by Redfin. This marks a significant increase from 13.6% in September 2022 and is the highest cancellation rate recorded in a year.

Florida and Texas have seen particularly high cancellation rates, with Tampa topping the list at 20.1%, up from 17.7% last year. Other cities experiencing considerable cancellation rates include San Antonio with 19%, along with Atlanta, Orlando, and Fort Worth, each showing nearly one in five deals collapsing before closing.

Factors Behind Escalating Cancellations

A combination of high mortgage rates, record home prices, and increasing discrepancies in expectations between buyers and sellers are driving the rising trend of contract cancellations. Many sellers, especially those who bought homes during the pandemic boom, are reluctant to negotiate or offer concessions, creating additional friction with potential buyers.

More than 70% of failed contracts dissolve during the inspection period, as many buyers reassess their decisions during this critical stage. First-time homebuyers often feel apprehensive due to prevailing market conditions, but there are pathways for transparency and support available from lenders.

Economic uncertainties, including worries about maintaining job security, are leading many buyers to reconsider their purchases. The Sun Belt, once a sought-after migration destination during the pandemic, is experiencing retreating buyers due to issues of affordability, climate risks, and hikes in homeowners association (HOA) fees and insurance premiums.

Comparison of Different Markets

In contrast, high-priced coastal metropolitan areas such as San Francisco, Nassau County in New York, and San Jose see cancellation rates below 7%, primarily driven by limited inventory.

The uptick in cancellations serves as both a symptom and a cause of a tight housing market. This trend may discourage some potential sellers from listing their homes, further exacerbating the situation. Nationally, factors such as economic jitters, fears of recession, and rising living costs are steering buyers away from deals they previously viewed as secure.

Significant increases in contract cancellations have been noted across 44 of the 50 most populous U.S. metropolitan areas. Some markets are also showing signs of a shift where buyers now have more negotiating power, anticipating repairs, price reductions, and other concessions amidst high selling prices and mortgage rates.

Conversely, homes in certain Northeast and Midwest locales, such as Nassau County, Montgomery County, and Milwaukee, have relatively lower cancellation rates attributable to existing pockets of affordability.

Market Dynamics and Buyer Sentiment

Buyers currently exhibit a more selective approach, negotiating harder and taking advantage of inspection and appraisal contingencies. The overall trend indicates a gradual rebalancing of the housing market, where sellers must adjust their expectations to avoid prolonged listings. As of July 2025, San Antonio recorded the highest cancellation rate at 22.7%, with Fort Lauderdale and Jacksonville also experiencing high rates.

Mortgage rates were reported at approximately 6.8% despite recent fluctuations, contributing further to buyer hesitance and uncertainty in the current market climate.

City	Cancellation Rate
Tampa	20.1%
San Antonio	19%
Atlanta	~20%
Orlando	~20%
Fort Worth	~20%
San Francisco	<7%
Nassau County, NY	<7%
San Jose	<7%

What was the home-purchase agreement cancellation rate in September 2023?

The cancellation rate was 15%, equating to over 53,000 canceled contracts.

Which cities have the highest cancellation rates?

Tampa leads at 20.1%, with San Antonio at 19%, followed by Atlanta, Orlando, and Fort Worth, each experiencing nearly one in five deals collapsing before closing.

What factors are contributing to the rising cancellation rates?

High mortgage rates, record home prices, and mismatches in buyer-seller expectations are among the contributing factors.

How much of the failed contracts fall apart during the inspection period?

More than 70% of failed contracts dissolve during the inspection period.

What is the current status of mortgage rates?

Mortgage rates are reported at around 6.8%.

Deeper Dive: News & Info About This Topic

HERE Resources

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Mortgage Rates Remain Stable Amid Government Shutdown
San Antonio’s Housing Market Sees Extended Selling Periods
U.S. Housing Market Experiences Slowdown as Homes Linger
San Antonio Experiences Surge in Home Purchase Cancellations
Winter Weather Advisory Hits San Antonio: Stay Cautious!

Additional Resources

• Redfin
• Wikipedia: Real Estate Market
• Fortune
• Google Search: US Housing Market 2025
• NewsNation Now
• Google Scholar: Home Purchase Cancellations
• Scotsman Guide
• Encyclopedia Britannica: Home Purchase Agreement
• Live Now Fox
• Google News: Home Purchase Cancellations