Terminated: Atlanta Homebuyers Cancel Contracts at Record Pace

Today I want to talk about something that recently came out from Redfin and it directly impacts what we’re seeing here in Atlanta.

In December 2025, about 16% of home purchase agreements nationwide were canceled, also known as a termination.

That’s the highest December cancellation rate on record going back to 2017.

So roughly 1 in 6 homes that went under contract…didn’t make it to closing.

Now here’s where it gets really interesting for us locally.

Atlanta had the highest termination rate in the country at 22.5%.

That means more than 1 in 5 contracts fell through. And Redfin pulled this data from the MLS and tracked when pendings went back active. From my experience, some terminations happen before the status even gets changed in the MLS so this rate is actually higher.

So what’s driving it?

First, buyers have more options.
Inventory has increased, which gives buyers room to be selective.

Second, affordability is still tight.
Even though rates have stabilized, monthly payments are still high enough that buyers are cautious.

And third, inspections matter again.
We’re not in that waive-everything, rush-to-win environment anymore.
If something comes up during due diligence, buyers are walking.

Now what does this mean?

If you’re a buyer — you have leverage.
But that doesn’t mean every deal is easy.
The home still has to be priced right and in good condition.

If you’re a seller, pricing and preparation are everything.
Overpricing or ignoring repairs is one of the fastest ways to lose a contract in this market.

The takeaway is this:
Atlanta has shifted into a more balanced, and in some price points, buyer-leaning market.

Contracts aren’t automatic anymore.
They have to make sense.

With all these terminations in play, now is a good time to reconsider a backup contract. A backup contract is a fully executed contract that is in a secondary position. If the primary contract terminates, the backup contract automatically becomes primary. For sellers, a backup contract allows the home to stay under contract and not have to go back on the market. For buyers, it’s an opportunity to get a home under contract that you may have missed because you weren’t the first offer or there were multiple offers received.

If you’re wondering how terminations are affecting your neighborhood or price range, reach out.

Because the metro headlines are one thing but your micro-market may tell a different story.

Dawn Levy is a native Atlantan and seasoned REALTOR® focused on the northern suburbs of the South’s largest city. Learn more about Dawn here.

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