Realtors are facing an unprecedented number of buyers backing out of home purchases as individuals become more selective in a challenging real estate landscape.
A recent Redfin report revealed that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that had gone under contract during that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, cited the increase in buyer hesitation as a response to a more expensive market. “They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list,” she stated.
In Miami, fellow Redfin agent Rafael Corrales has observed “nightmare scenarios” unfold, including last-minute cancellations over seemingly trivial details. Approximately 2,500 home purchases were canceled in Miami last month, accounting for about 17.6% of homes that went under contract in June. Corrales noted that the predominant concern remains affordability.
The median home sale price reached an all-time high of $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. Prospective buyers are also burdened by rising insurance costs, property taxes, homeowner association fees, and other expenses related to homeownership, all of which have been intensified by inflation.
The national affordability crisis has led to the most significant drop in home sales in eight months. According to Redfin, home sales fell by 0.5% in June—marking the largest decline since October 2023. Year over year, home sales decreased by 1.1% and were 21.5% lower than pre-pandemic levels.