Realtors are encountering an unprecedented number of hesitant buyers as consumers grow more selective in a challenging real estate landscape.
According to a report from Redfin published on Tuesday, nearly 56,000 home-purchase agreements were terminated in June, representing 15% of all homes that were under contract that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributed this increase in buyer hesitance to a more discerning clientele facing higher costs in the market.
“Buyers are withdrawing due to minor issues because the monthly expenses tied to purchasing a home today are simply too significant to overlook the items on their must-have list,” Zubiate stated.
Rafael Corrales, another Redfin agent in Miami, described “nightmare scenarios” that include last-minute cancellations over minor details. In June alone, around 2,500 home purchases were canceled in Miami, which constitutes about 17.6% of homes that went under contract. Corrales emphasized that the primary concern remains affordability.
In June, the median home sale price reached a new high of $442,525, with the average rate on a 30-year mortgage at 6.92%. Prospective buyers are also facing increasing burdens from insurance, property taxes, HOA fees, and other homeownership costs, all of which have been heightened by inflation.
The nationwide lack of affordability has led to the most significant decline in home sales in eight months, according to Redfin. Month-over-month, home sales decreased by 0.5% in June, marking the steepest drop since October 2023. Year-over-year home sales fell by 1.1% and were 21.5% below levels observed before the pandemic.