US Cities With The Most Home Sale Cancellations

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Published On: May 29th, 2025

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🔍 US Cities With The Most Home Sale Cancellations

Home sale cancellations are surging across the U.S., revealing a new trend in the 2025 housing market: growing buyer hesitancy amid rising economic uncertainty. According to a new Redfin report, tens of thousands of deals are falling through as would-be homeowners navigate high mortgage rates, sticker shock, and shifting local market dynamics.

🌎 Why This Matters

While inventory is finally beginning to recover from pandemic-era lows, buyers aren’t necessarily in a stronger position. Mortgage rates remain elevated, recession concerns linger, and affordability continues to weigh on purchasing power.

“The economy is uncertain right now, and it’s causing buyers to get the jitters.”
— Daryl Fairweather, Redfin Chief Economist

For many, this means second-guessing their decisions or renegotiating deals after learning about unexpected insurance costs or financing hurdles. The result? A spike in failed transactions and a subtle shift in market power.

📈 Home Sale Cancellations by the Numbers (April 2025)

Nationwide:

56,000 canceled deals

14.3% of all pending sales (up from 13.5% YoY)
Leading Metro: Atlanta, GA

❌ 20% of sales fell through (up from 17.6%)

Investor activity may be playing a role in cancellations

🔹 Top 10 Metros With the Highest Home Sale Cancellation Rates

Rank	Metro Area	Cancellation Rate
1	Atlanta, GA	20.0%
2	Orlando, FL	19.4%
3	Tampa, FL	19.1%
4	Riverside, CA	19.1%
5	Miami, FL	18.9%
6	Fort Lauderdale, FL	18.9%
7	Las Vegas, NV	18.6%
8	Fort Worth, TX	18.7%
9	Jacksonville, FL	18.4%
10	San Antonio, TX	18.2%

“In Florida and Texas, rising insurance costs are giving buyers pause.”
— Daryl Fairweather, Redfin Chief Economist

🌟 Cities With the Biggest Increase in Cancellation Rates (YoY)

Metro Area	Increase YoY
Anaheim, CA	+3.1 pts
Seattle, WA	+2.8 pts
Milwaukee, WI	+2.7 pts
Los Angeles, CA	+2.6 pts
Nashville, TN	+2.6 pts

These increases point to shifting buyer sentiment, even in some traditionally strong markets.

🏠 Markets With the Lowest Cancellation Rates

Metro Area	Cancellation Rate
Nassau County, NY	4.8%
Boston, MA	8.1%
Montgomery County, PA	8.1%
Minneapolis, MN	8.4%
New York, NY	8.7%
Milwaukee, WI	9.2%
Seattle, WA	9.8%
Newark, NJ	9.8%
Warren, MI	10.4%
New Brunswick, NJ	10.5%

“Demand in more affordable Northeast metros has been stable.”
— Fairweather, Redfin

📉 What’s Next for Buyers and Sellers?

Buyers: Now have more negotiating power in many regions, especially where cancellations are rising. You may find discounts or concessions from discouraged sellers.

Sellers: Must navigate a more cautious buyer pool. Offering insurance quotes upfront or seller credits could help keep deals on track.

Market Outlook: While rising cancellations indicate market jitters, they also signal a shift toward a buyer’s market in many areas.

“Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand.”
— Lawrence Yun, Chief Economist, National Association of Realtors

📊 Final Thoughts

The rising trend of home sale cancellations reflects a housing market in transition. While affordability pressures and economic uncertainty are causing more deals to fall apart, this shift also presents opportunities for patient buyers. As inventory grows and competition cools, we could see a more balanced market take shape in the months ahead.

🔎 Stay informed, stay flexible—and be ready to act when the right opportunity comes along.

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