Today's Market News:
More Would-Be Buyers Walk from Contracts
A recent analysis of MLS pending sales data found that over 40,000 U.S. home-purchase agreements were canceled in December 2025. This is equal to 16.3% of the homes that went under contract that month. It's also the highest December percentage of failed contracts since 2017.
Purchase cancellations were highest in Atlanta, Georgia (22.5%), Jacksonville, Florida (20.6%) and San Antonio, Texas (20.6%).
Cancellations were lowest in Nassau County, New York (3.8%), San Francisco, California (4.2%) and San Jose, California (8.9%).
Buyers frequently backed out of deals with inspection contingencies. Some learned of a home's structural issues and used this as a reason to cancel. Concerns about expensive mortgage payments were another reason for their walking away from deals.1
Staging That Understands Psychology
Assisting seller clients with home preparation is essential, especially in areas where sellers outnumber buyers. However, if you use staging psychology, you can help clients sell faster and perhaps close at a higher price. These strategies concentrate on convincing prospective buyers that their ideal lifestyle is waiting for them within the home.
Positive Anchors is a strategy that encourages buyers to see the house as a valuable asset. Consider staging with expensive-looking furniture and decorating in a luxe style. Adding smart home features helps as well, even if they're borrowed.
Inspire a Lifestyle. Another way to trigger an emotional response — probably the most important — is to encourage buyers to imagine living happily ever after in the home. Stage one or two relaxing nooks that suggest they would be ideal for reading or another relaxing pastime. (You may be able to learn about some buyers' interests by scanning their social media.)
Rule of Three. Also called the Rule of Odds, this appeals to our brains' preferences for balance over symmetry. Arrange items in groups of three or five to fulfill this. It works equally well for a variety of items, from floral arrangements to furniture to color palettes.Following this rule encourages buyers' perceptions that the interiors aren't overly staged, helping them to be more engaged with the house.2
Limits of the Institutional Investor Ban
Concerns that real estate investors are creating residential property shortages isn't anything new. The Stop Predatory Investing Act was introduced to Congress in 2023, and it denied tax deductions for investors owning 50 or more single-family rental properties.
The new Executive Order doesn't directly ban institutional investors from buying homes. Instead, it limits conventional mortgage guarantees for such transactions. Furthermore, it has exceptions for build-to-rent properties that are "planned, permitted, financed, and constructed as rental communities," which leaves room for other exceptions.
Currently, the Executive Order doesn't have a geographic focus, nor does it detail the extent of control one entity can exert in properties, such as partial ownership. In addition, it will not affect cash buyers or investors who use non-conforming financing.
After reviewing the Order, Realtor.com's senior economist Jake Krimmel commented: "Even under perfect enforcement, the policy would add little inventory overall. Because it only curbs future institutional demand, any effect would show up as homes sitting on the market slightly longer, rather than a surge of new supply."
He continued: "At best, this would amount to an inventory trickle; and likely only in select Sun Belt metros where inventory has already risen sharply due to market forces. It's also important to highlight a key positive: the carve-out for build-to-rent activity helps ensure the policy does not discourage new single-family construction."3
Ideas for Generating More Referrals
Looking for additional ways to earn referrals? One or more of the following strategies may be your key to a busier year.
Bring buyers and neighbors together. When a buyer client moves in, it's time to celebrate. Purchase a welcoming greeting card, then visit their neighbors in person and ask if they'd like to sign the card. Introduce yourself to each neighbor and leave your business card.
Engage past clients with some face time. Schedule some events so you can meet up with them again. These can be anything from wine tastings to charity drives. Holiday parties are another popular strategy.
Find memorable closing gifts. Don't prioritize self-promotion over finding a RESPA-compliant gift that they'll really appreciate. Gift baskets, an Echo Dot, or even a custom painting of the buyers' new home proves your thoughtfulness. Currently, several AI-powered apps can turn property photos into art. You can even go online to purchase a framed version on canvas.
Automate your methods. If you forget to ask for referrals or feel awkward doing this, consider using a reputation management platform (RMP). These handle review requests and can increase your online visibility. Contact me if you'd like me to recommend one or more RMPs.
If you prefer to keep it personal, remember to ask right after the closing or when delivering your closing gift.4
Takeaways From This Week's Fed Meeting
Two Fed cuts are expected for 2026, but the first isn't expected to be announced until late spring or early summer. However, discussions of a possible replacement for Fed Chairman Jerome Powell continue to make headlines.
In addition, the recent Justice Department subpoena that questioned Powell about the Fed's renovations to its Washington, D.C., headquarters resulted in a videotaped statement where Powell described the subpoena as a "pretext" for President Trump's desires to see the Federal Reserve cut rates more aggressively.5
Sources: 1redfin.com, 2lifehacker.com, 3realtor.com, 4theclose.com, 5cnbc.com
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