Realtors are encountering an increasing number of indecisive buyers, as consumers become more selective in a challenging real estate environment.
According to a report from Redfin released Tuesday, nearly 56,000 home purchase agreements were canceled in June, representing 15% of all homes that went 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, attributes the rise in buyer hesitance to the demands of a more discerning clientele facing escalating home prices. “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,” Zubiate explained.
In Miami, Realtor Rafael Corrales reported witnessing troubling trends, such as last-minute cancellations over trivial matters. In June, around 2,500 home purchases were called off in Miami, amounting to about 17.6% of homes under contract. He noted that affordability remains the primary hurdle for buyers.
The median home sale price hit a record $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. The combination of soaring home prices, high mortgage rates, insurance, property taxes, and HOA fees—all exacerbated by inflation—has weighed heavily on potential buyers.
Nationwide affordability challenges have led to the most significant decline in home sales in eight months, as reported by Redfin. Month-over-month, home sales dipped 0.5% in June, marking the steepest decline since October 2023. Year-over-year, home sales experienced a 1.1% decrease and were down 21.5% compared to pre-pandemic figures.