The U.S. housing market has entered a stalemate in late 2025, characterized by a simultaneous rise in home purchase cancellations and a surge in sellers removing properties from the market. As buyers exercise newfound leverage to back out of deals, sellers are choosing to delist rather than lower prices, deepening the friction in an already cooling market.
Data released this week by Redfin reveals that 15.1% of home purchase agreements were canceled in October, a slight increase from the previous year, driven by high costs and economic uncertainty. Concurrently, nearly 85,000 listings — about 5.5% of the total — were pulled from the market in September as sellers refused to settle for lower offers.
This standoff highlights a disjointed market where buyers are emboldened to demand concessions, while sellers, facing the prospect of selling at a loss, are opting to wait on the sidelines for a more favorable environment.
Roughly 53,000 U.S. home-purchase agreements were canceled in October, a figure that underscores the growing hesitation among purchasers. According to Redfin, high housing costs and economic volatility are giving buyers cold feet, but the shift toward a buyer’s market has also provided more options.
With sellers substantially outnumbering homebuyers, purchasers feel less pressure to compromise on maintenance issues or price, often electing to walk away if demands are not met.
On the supply side, sellers are retreating rather than capitulating to these new market dynamics. The 5.5% delisting rate in September represents the highest rate for that month since 2016.
Redfin economist Asad Khan noted that sellers are “giving up” after homes sit on the market for extended periods, unwilling or unable to accept lower prices. Approximately 15% of the homes delisted in September were at risk for selling at a loss, the highest portion in five years, as recent buyers find themselves with little to no equity cushion.
The standoff is geographically uneven, with the Sun Belt seeing the highest volatility. San Antonio led the nation with a 21% cancellation rate in October, followed closely by Fort Lauderdale, Fla., at 20%. In these regions, high inventory levels from new construction has given buyers confidence that they can find better alternatives if a deal falters.
In contrast, the Northeast remains tighter, according to the Redfin analysis. Nassau County, N.Y., posted the lowest cancellation rate at 4.4%, reflecting a market where competition remains stiff and buyers are less likely to risk losing a contract. As winter approaches, the inventory of “stale” listings — those sitting for 60 days or more — has reached nearly 70%, further motivating sellers to pull listings.
While some economists view this reduction in supply as a mechanism to establish a floor for home prices, the lack of transactions points to a persistent gap between seller expectations and buyer affordability in the final quarter of 2025.
