National home sale agreements that fell through last month reached a record high for February, with 13.7 percent of home buyers backing out of deals.
The Redfin analysis is based on multiple listing service (MLS) pending sales data and attributes the rise in back-outs to the influx of additional buyer options.
“There are hundreds of thousands more home sellers than buyers in the country, a near-record gap that gives buyers options and negotiating power,” the report states.
“A buyer may back out of a contract during the inspection period if they see a home they like better or an issue comes up that they don’t want to repair.”
In some cases, the report indicates, buyers may just change their minds if they see another home that better meets their needs or price point.
Juan Castro, a Redfin Premier agent in Orlando, Florida, noted that “homes are falling out of contract right and left.” According to Castro, sometimes buyers make an offer, but never send the deposit because of several factors, including hesitation about monthly payments and fear of commitment to a home that may need repairs.
“I’m also seeing buyers negotiate aggressively—for instance, maybe they ask for a brand-new roof because three shingles are missing on an otherwise perfectly good roof—then cancel the deal if the seller says no,” he shared in the report.
Redfin noted that the current economic and geopolitical climate may also be playing a role in house hunter decisions.
“Many Americans are concerned about job security, inflation, the Iran war, and other world events that can make their finances feel shaky,” the report states.
Fluctuating mortgage rates may also be responsible for buyer apprehension. Often, when buyers make an offer, the rates may be lower than when it comes time to lock in the loan rate.
As of March 19, Freddie Mac reported the 30-year fixed rate at 6.22 percent, and the 15-year fixed rate at 5.54 percent.
Tampa, Florida, had the nation’s highest share of canceled home-purchase agreements among 47 major metros in February, at 18.1 percent. In San Antonio, Texas, and Atlanta, Georgia, 17.9 percent of homebuyers backed out of deals. Jacksonville, Florida, experienced a 17.5 percent cancellation rate, and Fort Worth, Texas, a 17.3 percent rate.
Redfin noted that in Tampa alone, there were 84 percent more home sellers than buyers in February, giving potential homeowners a plethora of choices. San Antonio sellers outnumber buyers by more than 50 percent.
San Francisco, San Jose, and Oakland—California’s priciest real estate markets—saw the lowest number of contract cancellations, ranging from 3.7 percent to 7.7 percent. Meanwhile, Nassau County, New York, reported a 4.5 percent of agreements falling through, and Milwaukee, Wisconsin, 7.5 percent.
However, Los Angeles saw contract cancellations rise from 12.1 percent in February 2025 to 15 percent last month. In Virginia Beach, 14.7 percent of contracts were stalled—up from 11.9 percent a year earlier. Boston also experienced a year-over-year growth in cancellations, from 8.2 percent to 10.8 percent in February.