Realtors are encountering an unprecedented number of hesitant buyers as consumers become increasingly selective amid a challenging real estate landscape.
According to a report from Redfin, nearly 56,000 home-purchase agreements in June fell through, equating to 15% of all homes that went under contract in that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent operating in the San Francisco Bay Area, attributed this trend of buyer hesitation to a more discerning clientele, who are confronting a costly market. “Buyers are withdrawing due to minor issues because the monthly costs associated with purchasing a home today are simply too high for them to overlook their must-have requirements,” Zubiate stated.
Rafael Corrales, a fellow Redfin agent based in Miami, reported witnessing numerous challenging situations, including last-minute withdrawals over trivial matters. In Miami alone, around 2,500 home purchases were canceled last month—approximately 17.6% of homes that had gone under contract in June. Corrales noted that the primary concern remains affordability.
The median home sale price reached a staggering $442,525 in June, with the average interest rate on a 30-year mortgage at 6.92%. Coupled with high home prices and elevated mortgage rates, prospective buyers are also burdened by additional costs, including insurance, property taxes, HOA fees, and other homeownership expenses that have been intensified by inflation.
The nationwide affordability crisis has led to significant declines in home sales, marking their steepest drop in eight months, according to Redfin. On a monthly basis, home sales decreased by 0.5% in June, representing the largest decrease since October 2023. Annually, home sales fell by 1.1% and were 21.5% below pre-pandemic figures.