- 13.4%of home-sale agreements that went under contract in March were canceled. Home hunters are getting cold feet as costs remain high and financial uncertainty is in the air.
- Agreement cancellations are most typical in big-time buyer’s markets like San Antonio and Orlando, where home searchers have a lot of options.
- They’re least common in Nassau County, Montgomery County and Milwaukee– 3 of simply five seller’s markets in the U.S.
Nearly 53,000 U.S. home-sale agreements failed in March, equal to 13.4% of homes that went under contract that month– up from 12.5% a year earlier. That’s tied with 2023 as the highest March share on record aside from 2020, when the unpredictability surrounding the start of the pandemic triggered numerous buyers to back out of deals.
This is based upon a Redfin analysis of MLS pending-sales information. The information is seasonal; usually, there’s a greater share of cancellations at the end of the year and a lower share in the spring. That’s why we compare this March to past Marchs. Please note: Homes that fell out of contract throughout a provided month didn’t always go under contract that exact same month. This information undergoes revision.
There are numerous reasons home-purchase arrangements are breaking down at a greater rate than typical for this time of year:
- It’s a purchaser’s market. There are 600,000 more home sellers than purchasers in the U.S. housing market. That gives buyers negotiating power when they’re entering into a home-purchase arrangement with sellers, and it makes it much easier for buyers to consist of contingencies like the inspection contingency, which permits purchasers to back out during a certain duration, understanding they have a lot of other choices. They may cancel an offer since an issue comes up that they don’t wish to repair, due to the fact that they discover a home they like much better, or since they simply changed their mind.
- Real estate costs are high. Home mortgage rates jumped in March, and home-sale rates are increasing. Some purchasers back out after going under contract when they take a much deeper look at their future month-to-month payments, closing costs and other associated payments.
- Economic unpredictability. The Iran war is causing chaos in monetary markets and pushing mortgage rates up. It’s also contributing to an air of monetary uncertainty for buyers, some of whom are altering their minds about making significant purchases as a result.
“Buyers are getting cold feet,” stated Patricia Ammann, a Redfin Premier representative in Arlington, VA. “There have been layoffs, ups and downs in the market and geopolitical turmoil– and on top of all that, housing expenses are still high. Because purchasers are considering dedicating to investing a lot money in uncertain times, they’re incredibly fussy, which is leading some of them to back out before a deal closes.”
Contract Cancellations Are A Lot Of Typical in San Antonio and Other Significant Buyer’s Markets
In San Antonio, 18.7% of home-purchase contracts were canceled in March, the highest share of the 43 major U.S. metros Redfin examined. It’s followed by 4 other Sun Belt metros: Orlando, FL (18.1%), Riverside, CA (18.1%), Atlanta (18%) and Las Vegas (17.8%).
All five of those are big-time purchaser’s markets. In San Antonio, for instance, there are more than two times as lots of sellers as purchasers. That permits buyers to back out of one deal and fairly easily proceed to the next one.
Agreement cancellations are least common in Nassau County, NY, where simply 3.5% of offers failed in March, the most affordable share amongst the cities Redfin examined. Next are Montgomery County, PA (5.7%), Milwaukee (6.1%), New York City (7.4%) and Seattle (8.5%).
Nassau County, Montgomery County and Milwaukee are 3 of simply 5 seller’s markets in the U.S. Purchasers in those locations are rarely backing out because if they do, it may be difficult to discover another home.
Cancellations Increased A Lot Of in Riverside and Atlanta
Contract cancellations rose most in Riverside, to 18.1% in March from 15.1% a year previously. Next come Atlanta, where 18% of contracts were cancelled, up from 15.3%, and Columbus, OH (14.8%, up from 12.2%).
Cancellations decreased in 10 city locations. The most significant decline was in Miami, where 14.5% of homebuying agreements were canceled, down from 16.1%. Next come Cleveland (14%, down from 15.1%), Nassau County (3.5%, below 4.4%), Milwaukee (6.1%, below 7%) and Fort Worth, TX (16.2%, down from 17.1%).
| Metro-Level Summary: Canceled Home-Purchase Agreements, March 2026
43 of the most populated U.S. city locations Redfin examined the 50 most populated U.S. cities and included the 43 with enough data |
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| U.S. metro area | March 2026: Pending sales that fell out of contract, as % of overall pending sales | March 2025: Pending sales that fell out of contract, as % of overall pending sales |
| Anaheim, CA | 12.6% | 12.6% |
| Atlanta, GA | 18.0% | 15.3% |
| Austin, TX | 12.5% | 12.9% |
| Baltimore, MD | 11.5% | 11.1% |
| Boston, MA | 9.5% | 7.3% |
| Chicago, IL | 12.5% | 11.4% |
| Cincinnati, OH | 13.5% | 12.2% |
| Cleveland, OH | 14.0% | 15.1% |
| Columbus, OH | 14.8% | 12.2% |
| Dallas, TX | 14.4% | 14.6% |
| Denver, CO | 14.5% | 13.6% |
| Detroit, MI | 14.5% | 14.9% |
| Fort Worth, TX | 16.2% | 17.1% |
| Houston, TX | 15.3% | 13.3% |
| Indianapolis, IN | 12.7% | 13.0% |
| Jacksonville, FL | 17.4% | 16.4% |
| Las Vegas, NV | 17.8% | 15.7% |
| Los Angeles, CA | 15.1% | 13.8% |
| Miami, FL | 14.5% | 16.1% |
| Milwaukee, WI | 6.1% | 7.0% |
| Minneapolis, MN | 9.2% | 7.5% |
| Montgomery County, PA | 5.7% | 5.6% |
| Nashville, TN | 12.8% | 11.6% |
| Nassau County, NY | 3.5% | 4.4% |
| Brand-new Brunswick, NJ | 9.8% | 9.1% |
| New York City, NY | 7.4% | 7.3% |
| Newark, NJ | 9.3% | 8.7% |
| Orlando, FL | 18.1% | 17.8% |
| Philadelphia, PA | 10.4% | 10.2% |
| Phoenix, AZ | 16.4% | 15.2% |
| Pittsburgh, PA | 12.9% | 12.3% |
| Portland, OR | 13.3% | 12.8% |
| Providence, RI | 10.1% | 7.6% |
| Riverside, CA | 18.1% | 15.1% |
| Sacramento, CA | 13.8% | 13.1% |
| San Antonio, TX | 18.7% | 16.8% |
| San Diego, CA | 14.9% | 14.4% |
| Seattle, WA | 8.5% | 8.3% |
| Tampa, FL | 17.2% | 16.9% |
| Virginia Beach, VA | 13.8% | 12.1% |
| Warren, MI | 11.1% | 10.5% |
| Washington, DC | 10.3% | 9.6% |
| West Palm Beach, FL | 12.7% | 13.5% |
| National– U.S.A. | 13.4% | 12.5% |