The winter blues are hitting the real estate scene and buyers are putting a damper on the market by snapping up a home from the wealth of active inventory, then backing out after the contract is out.
And while the share of home sales going out of contract this year looks similar to last year, ending December at 7.1%, it’s unchanged from a year ago, according to Realtor.com® data scientist. Sabrina Speinuthere are five markets that are hit the hardest.
The largest percentages of buyers out of contract are in Atlanta (10.3%), Las Vegas (10.1%), San Antonio, TX (9.6%), Riverside, CA (9.3%), and Phoenix (9.2%), according to Realtor.com data.
This comes as existing home sales fell 8.4% in January—the slowest sales rate in more than two years, even as mortgage rates hit a three-year low of 6.09%.
The last time there was a dramatic increase in deals that took place in March 2020, when the housing market was hit by the effects of the pandemic.
“In the past periods when mortgage rates went up—including 2018, 2022, and 2023—a larger share of housing was put back on the market than we see today,” Speianu said.
“Overall, contract cancellations appear to be more related to sudden increases in borrowing costs than periods when rates remain high but stable,” Speianu explained.
There can be many reasons why buyers break contracts, including finding a cheaper alternative home or locking in a lower mortgage rate.
Canceled contracts
Atlanta metro has a median listing price of $400,000 and more than 23,000 active listings as of January, and the area leads the country in the number of contracts falling at 10.3%.
Bruce Allionreal estate professional and attorney with Re/Max Town & Country, tells Realtor.com that he believes significant real estate growth in the Atlanta region has contributed to buyers pulling back.
Ailion explains that the Realtor’s announced purchase and sale agreement has a due diligence/inspection period.
“That allows for termination for any reason or no reason. If the buyer sees a better opportunity during due diligence, he can continue,” said Ailion.
“As buyers have more options and more sellers are lowering their prices, a higher number of buyers cut the deal when they find an attractive purchase during their due diligence.”
Realtor.com’s chief economist Jake Krimmel agrees, noting that “as inventory grows and the pace of sales slows, that means buyers in those markets have more homes to choose from and fewer buyers to compete with.
“Given those favorable market conditions, it’s not surprising that some buyers are pulling out deals, especially in those metros.”
Overall, inventory increased modestly in all four major US states in January compared to a year earlier, according to Realtor.com’s monthly Housing Market Trends report for January.
House roulette
A similar situation can be found in Las Vegas, where 10.1% of deals fell during the last month of 2025.
But while Las Vegas is in a buyer’s market, inventory isn’t as plentiful as in Atlanta. The Las Vegas area is seeing an active listing count of just under 9,000 homes for sale with a median list price of $465,000.
“On the listing side, it’s important to make sure the buyer has solid loan approval and solid financing, because that reduces the risk of the deal falling apart over time,” Robert Littlereal estate agent with Re/Max Advantage in Henderson, NV, tells Realtor.com.
Vegas was joined by San Antonio (9.6%), Riverside (9.3%), and Phoenix (9.2%), which didn’t hit double-digits for home sale cancellations, but still saw some of the highest in the country.
A real estate agent in San Antonio said he is “definitely” seeing an increase in deals falling through.
“A lot of properties I’ve seen come back on the market in San Antonio because of surprises discovered during inspections,” Danny Johnson, Danny Buys Houseshe tells Realtor.com.
Authorized buyers
As the market moves toward a buyer’s market, Little said he’s hearing a lot of interest rates coming down. For others, they hope that the “perfect” home will come on the market.
“What I remind them is that today’s market gives them many options and bargaining power because the inventory is high,” said Little. “If prices go down over time, they can provide money again, but if prices go down, prices usually go up and that profit disappears.”
“I also tell buyers that after 19 years in the business and over 950 homes sold, it’s rare for anyone to find a truly ‘perfect’ home. But if a home checks 8 or 9 out of 10 boxes, they’re in good shape and should seriously consider moving forward.”
Little has been seen with sellers who are discouraged because the market is in favor of buyers.
But, he points out, “If they bought within the last three years, it would be difficult to sell and break even as the market has been low.”
“But for those who bought before 2022, many still have strong equity and can sell successfully, often breaking even or walking away with a good profit.”
