Home-Sale Cancellations Reached Nearly 53,000 in March

Nearly 53,000 home-sale agreements that went under contract in March were canceled. This figure is equal to 13.4% of homes that went under contract that month, up from 12.5% a year earlier, according to recent data from real estate marketing platform Redfin. The share of cancellation is tied with 2023 as the highest March share on record aside from 2020, when buyers were backing out of deals at unprecedented rates.

Some cities saw much higher rates of cancellations

San Anotonio saw the most cancellations, with 18.7% of home sales falling through in March. This metro is followed by four other Sun Belt metros, including Orlando, Fla., at 18.1%, Riverside, Calif., at 18.1%, and Las Vegas at 17.8%.

These metros are all considered buyer's markets, and because buyers have more options, they are more likely to back out of sales in favor of better deals. 

Meanwhile, some metros barely recorded any cancellations

Home-sale cancellations are least common in Nassau County, N.Y., where just 3.5% of deals fell through in March. Nassau County, N.Y., was followed by Montgomery County, Pa., at 5.7%, Milwaukee at 6.1%, New York City at 7.4%, and Seattle at 8.5%.