Morning Business Report: Home deals fall through, market hits record high

A growing number of homebuyers are walking away from purchase agreements as market conditions continue to shift.

(LILAMAX)- A growing number of homebuyers are walking away from purchase agreements as market conditions continue to shift.

More than 40,000 signed home purchase agreements were canceled in December, representing 16 percent of all homes that went under contract, according to Redfin. Home sellers now outnumber buyers by a record margin, giving buyers more leverage and more choices. Analysts say many buyers are willing to walk away if they believe they can find a better or more affordable option.

Florida saw some of the highest numbers of canceled deals, particularly in Jacksonville and Tampa. Meanwhile, New York and San Francisco recorded the fewest cancellations.

In legal news, TikTok has settled a social media addiction lawsuit ahead of a landmark trial scheduled for this week. The settlement allows TikTok to avoid a trial where plaintiffs planned to argue that social media platforms are inherently defective and subject to personal injury liability. However, Meta, YouTube, and Snapchat will continue to trial.

The plaintiffs allege the companies knowingly created addictive features that harmed mental health and led to self-harm and suicidal thoughts.

On Wall Street, the S&P 500 closed at a record high as investors await the Federal Reserve’s decision on interest rates expected later today.

Meanwhile, UPS announced plans to cut about 30,000 jobs this year as it winds down its partnership with Amazon. The delivery giant says it plans to reduce total operational hours by approximately 25 million as it lowers its dependence on Amazon. UPS also identified 24 buildings slated for closure in the first half of 2026, noting additional closures could come later this year. The company closed 93 buildings last year.

And while many Americans say they are paying attention to upcoming tax law changes, a new study suggests most do not fully understand how those changes will affect them. The study found that 84 percent of Americans say they follow tax law changes, but only 55 percent actually research what those changes mean. Forty-one percent admit they do little to no research at all.

Commissioned by TaxSlayer and conducted by Talker Research, the study also found that two in three Americans do not plan to make any financial decisions ahead of the tax changes that could benefit them, such as purchasing an electric vehicle, making large charitable donations, or adjusting investments.