Summary of "Record Breaking: 40,000 Home Deals Canceled in December 2025! Homeowners in Trouble! #housingmarket"

Video Summary:

“Record Breaking: 40,000 Home Deals Canceled in December 2025! Homeowners in Trouble!”

Presenter: Ashley Pickkins, real estate agent and broker with 20 years of experience based in Memphis, Tennessee.

Key Finance-Specific Content

Housing Market Trends & Data

Over 40,000 US home purchase agreements were canceled in December 2025, representing 16.3% of homes under contract that month — the highest December cancellation rate since at least 2017.
Data sourced from Redfin’s analysis of MLS pending sales, comparing December 2025 to prior Decembers.
Rising home inventory and high housing costs have shifted the market to a buyer’s market in most areas.
Buyers are increasingly cancelling contracts, often using the inspection contingency due to structural issues or realizing mortgage payments are unaffordable.
Mortgage payments have recently declined due to falling mortgage rates, but overall affordability remains low.
Redfin economists predict affordability to gently improve in 2026 as wages rise faster than housing costs, though the presenter is skeptical due to ongoing layoffs and economic uncertainty.

Regional Breakdown of Cancellation Rates

Atlanta, GA: Highest cancellation rate nationally; over 20% of pending sales canceled in December (up from 19.6% in November). Sellers outnumber buyers by over 80%.
Other top metros with high cancellation rates include:
- Jacksonville, FL: 20.6%
- San Antonio, TX: 20.6%
- Cleveland, OH: 20.2%
- Tampa, FL: 19%
Bay Area cities (San Jose, Oakland, Sacramento) saw significant annual increases in cancellations but remain more balanced markets.
Other cities with notable cancellation rates: Anaheim (14%), Austin (15%), Chicago, Dallas (18%).

Market Advice & Strategy for Buyers

Buyers should negotiate aggressively in the current buyer’s market.
Avoid new listings where sellers remain “delusional” on price; instead, focus on homes that have been on the market for months (e.g., 90+ days) where sellers are more motivated.
Do not waive contingencies like inspections or appraisals as was common in the prior sellers’ market (2021-2022).
If sellers refuse to negotiate or cover closing costs, buyers should move on to other properties.
Be cautious about “catching a falling knife” by overpaying in a declining market.
If job security is uncertain, buyers are advised to hold off on purchasing or be very cautious.

Macroeconomic & Employment Context

Significant layoffs reported, especially in warehouse and entry-level jobs.
Example: Nike announced layoffs of 775 employees at its Memphis warehouse as part of automation efforts.
Automation and AI are accelerating, threatening many warehouse and retail jobs.
Job numbers reporting has slowed, possibly masking economic weakness.
Presenter warns viewers not to be complacent or overly optimistic about job security or wage growth.
Advice to viewers: Use tax refunds and savings prudently — pay down debt, make home repairs, avoid unnecessary spending.

Distressed Real Estate

Rising foreclosures and distressed sales are increasing.
Sellers in foreclosure face difficulty selling as many buyers cancel contracts.
Distressed sellers may have to accept lower prices or face auctions.

Methodology / Framework / Recommendations for Buyers

Compare cancellation rates month-over-month and year-over-year for market insight.
Focus on homes with longer days on market for better negotiation leverage.
Always use contingencies (inspection, appraisal) to protect from unforeseen costs.
Negotiate closing costs with sellers; do not accept sellers’ demands to add closing costs on top of price.
Monitor local employment and economic conditions as indicators of housing market health.
Avoid overextending financially; mortgage affordability is key.
If job stability is questionable, delay buying or be conservative in offers.

Key Numbers & Metrics

40,000+ US home purchase cancellations in December 2025 (16.3% cancellation rate).
Top metro cancellation rates:
- Atlanta: 22%
- Jacksonville: 20.6%
- San Antonio: 20.6%
- Cleveland: 20.2%
- Tampa: 19%
Nike layoffs: 775 employees in Memphis warehouse.
Mortgage rates recently declined, improving payments but not enough to offset high home prices.
Sellers outnumber buyers by over 80% in Atlanta.

Disclaimers / Cautions

The presenter emphasizes this is not financial advice, but practical real estate guidance based on experience. Skepticism is expressed toward optimistic economic forecasts amid layoffs and automation. Viewers are encouraged to use common sense, avoid FOMO, and plan financially for uncertainty. Caution is advised with tax refunds and discretionary spending in a shaky economic environment.

Presenter: Ashley Pickkins, Memphis-based real estate broker and auction specialist, 20 years in real estate, known as “Your Agent Ashley” on YouTube and Instagram.