US Homebuyer Contract Cancellations Hit Record 16.3% in December as Housing Stalls

US homebuyers canceled purchase agreements at a record rate of 16.3% in December 2025, according to Redfin data released January 26, reflecting a standoff between sellers clinging to high prices and buyers facing elevated mortgage costs and increased inventory. More than 40,000 contracts were canceled during the month, slightly exceeding the previous record set during March 2020 COVID lockdowns. Existing home sales in 2025 fell below 2024's already record-low levels dating to 1995. Redfin economists note buyers now have more options and are using inspection contingencies to exit deals primarily due to affordability concerns. The cancellation surge parallels a 50% year-over-year increase in sellers withdrawing listings throughout 2025, creating what industry professionals describe as a "standoff market" where neither party holds decisive advantage amid economic uncertainty and pricing disparities.