Yahoo Finance

(Bloomberg) -- Homebuyers in the US canceled purchase contracts at a record pace as economic and political uncertainty gave them cold feet.

Most Read from Bloomberg

• Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty

• The Trump Administration Takes Aim at Transportation Research

• Shelters Await Billions in Federal Money for Homelessness Providers

• NYC Office Buildings See Resurgence as Investors Pile Into Bonds

• Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park

About 14.3% of sales agreements fell through in January, up from 13.4% a year earlier and the highest level for the month in data going back to 2017, according to data from brokerage Redfin Corp.

House hunters face an ever-growing list of pressures, from high mortgage rates and prices to concerns about how trade wars and federal government cutbacks may ripple through the economy. The high rate of cancellations casts a pall over prospects for the key spring sales season, which is just getting underway.

Redfin’s report followed data from the National Association of Realtors that showed contracts to buy resale homes slumped to a record low last month.

“Widespread economic and political uncertainty” caused more buyers and sellers to pull out of deals in January, Redfin said. “Tariffs, layoffs and federal policy changes are among the factors contributing to an air of instability. Some people are choosing to stay put.”

Atlanta had the highest rate of cancellations last month, at 19.8%. Following were Orlando, Las Vegas, Houston and Jacksonville, Florida, each at around 18%.

Rising inventory in certain markets may be behind some cancellations. More supply in those areas “means buyers have license to be fickle,” Redfin said. If an issue comes up in the inspection period, buyers may back out because they see opportunity to find a better home that doesn’t have that issue.

Some agents are advising buyers not to give up on homes they want, even if they’ve lost a bidding war.

“It’s worth checking in with the listing agent about a week after the house goes under contract,” said Alison Williams, a Redfin agent in Sacramento, California. “Twice since the start of the year, I’ve found out the original buyer canceled the contract, and my clients were able to get their offers accepted before the home went back on the market.”

Most Read from Bloomberg Businessweek

• Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost?

• Can Dr. Phil’s Streaming Makeover Find an Audience in the MAGA Era?

• Trump’s SALT Tax Promise Hinges on an Obscure Loophole

• Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience

• Walmart Wants to Be Something for Everyone in a Divided America

©2025 Bloomberg L.P.