An estimated one in seven home purchases were canceled in January, especially in the Southeast, according to Redfin.

The online real estate brokerage reports that more than 41,000 home-purchase agreements fell through in January, equal to 14.3% of homes that went under contract that month. That is up from 13.4% of deals that fell through a year earlier and the highest cancellation rate for this time of year since at last 2017.

The high level of home purchases falling through is another sign of a general slowdown in the housing industry. Aside from the COVID-19 pandemic, pending home sales fell to their lowest level on record in January.

Redfin also notes that housing inventory has risen to its highest levels since 2020, offering homebuyers more options and tilting the market in the buyer’s favor. Redfin agents have found that some deals are falling through because buyers, and occasionally sellers, are changing their minds due to economic and political uncertainty. Tariffs, layoffs and federal policy changes were among the factors mentioned by agents as impacting the market.

In addition, the rising cost of homes and the high mortgage rates are forcing some homebuyers to change their minds.

Some of the top metropolitan areas of the Southeast suffered the highest percentage of deals falling through in January. Atlanta led the nation in cancelations, with 19.8% of pending home sales falling through, up 3.2% from one year ago. Orlando was next with 18.2% of deals being canceled, up 1.4% from January 2024; followed by Las Vegas, where 17.9% of home deals were cancelled, an increase of 1.5% from last year. Rounding out the top five cities for cancelations, Houston and Jacksonville, Florida, both saw 17.8% of home deals canceled in January.