The winter blues are hitting the housing landscape and buyers are ghosting the market by snapping up a home from the wealth of active inventory, then backing out after it’s gone under contract.
And while the share of home sales falling out of contract this year looks much like last year, ending December at 7.1%, unchanged from a year earlier, according to Realtor.com® data scientist Sabrina Speianu, there are five markets that are being hit the hardest.
The largest percentage of buyers backing out of homes under 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 sales of existing homes nosedived 8.4% in January—the slowest sales pace in more than two years, even as mortgage rates touched a three-year low of 6.09%.
The last time there was a dramatic surge with deals falling through was in March 2020, when the housing marketwas hit by the effects of the pandemic.
“In past periods when mortgage rates were rising—including 2018, 2022, and 2023—a higher share of homes returned to the market than we’re seeing today,” says Speianu.
“Overall, contract cancellations appear to be more closely tied to sudden increases in borrowing costs than to periods when rates remain elevated but stable,” explains Speianu.
There could be a number of reasons why buyers are breaking contracts, including finding another home that’s cheaper or locking in a lower mortgage rate.
Canceled contracts
The Atlanta metro has a median list price of $400,000 and more than 23,000 active listings as of January, and this area leads the country with the number of contracts falling through at 10.3%.
Bruce Ailion, a real estate professional and attorney with Re/Max Town & Country, tells Realtor.com he believes the significant inventory growth in the Atlanta region has contributed to buyers backing out.
Ailion explains the standard Realtor promulgated purchase and sale agreement has a due diligence/inspection period.
“That allows for termination for any reason or no reason. When a buyer sees a better opportunity in the due diligence period they can move on,” says Ailion.
“With buyers having more options and many sellers reducing their price, a higher number of buyers are terminating an agreement when they find a more attractive purchase during their due diligence.”
Realtor.com senior economist Jake Krimmel agrees, noting “as inventory grows and the pace of sales slows that means the buyers in those markets have more homes to choose from and fewer other buyers to compete with.
“Given those more favorable market conditions, it’s no surprise that some buyers are pulling out of deals in those metros in particular.”
Overall, inventory increased modestly in all four major US regions in January compared with the prior year, according to the Realtor.com January Monthly Housing Market Trends report.
Real estate roulette
The same scenario can be found in Las Vegas, where 10.1% of deals have fallen through during the last month of 2025.
But while Las Vegas is in a buyer’s market, inventory isn’t as abundant 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.
“From the listing side, it’s critical to verify that the buyer has a strong loan approval and solid financials, because that reduces the risk of the deal falling apart later,” Robert Little, real estate agent with Re/Max Advantage in Henderson, NV, tells Realtor.com.
Vegas is joined by San Antonio (9.6%), Riverside (9.3%), and Phoenix (9.2%), which aren’t hitting double-digit territory for home sale cancellations, but still seeing some of the highest in the country.
A real estate agent in San Antonio said he’s “definitely” seeing an increase in deals fall through.
“Most of the properties that I’ve seen go back on market in San Antonio are due to surprises found during inspection,” Danny Johnson, with Danny Buys Houses, tells Realtor.com.
Buyers in command
As the market tilts toward a buyer’s market, Little said he’s hearing a lot comes down to interest rates. For some, they’re hoping the “perfect” home hits the market.
“What I remind them is that today’s market gives them more options and negotiating power because inventory is higher,” says Little. “If rates come down later, they can always refinance, but if rates drop, prices typically rise and that leverage disappears.”
“I also tell buyers that after 19 years in the business and over 950 homes sold, it’s rare anyone finds a truly ‘perfect’ house. But if a home checks 8 or 9 out of 10 boxes, they’re in a great position and should seriously consider moving forward.”
Little has also seen sellers who are discouraged because the market is favoring buyers.
But, he points out, “If they purchased within the last three years, it can be tougher to sell and break even since the market has been relatively flat.”
“But for those who bought before 2022, many still have strong equity and can sell successfully, often breaking even or walking away with a nice profit.”
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