Realtors are experiencing an increase in buyers backing out of home purchases as individuals become more selective in a challenging real estate market. According to a recent report by Redfin, 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 any June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to a more discerning buyer demographic facing a high-cost market. She noted that many buyers are withdrawing due to minor concerns, as the financial demands of purchasing a home today make it essential for them to meet all their requirements.
In Miami, Redfin agent Rafael Corrales reported troubling instances of last-minute cancellations over trivial issues, with around 2,500 home purchases canceled last month—approximately 17.6% of homes that went under contract in June. He pointed out that the primary factor affecting buyers is the overall affordability of homes.
In June, the median home sale price reached a staggering $442,525, while the average rate for a 30-year mortgage was recorded at 6.92%. Moreover, potential homebuyers are faced with rising costs related to insurance, property taxes, HOA fees, and other homeownership expenses, which have been intensified by inflation.
This affordability crisis has led to the largest decline in home sales in eight months, as reported by Redfin. Home sales fell by 0.5% month-over-month in June, marking the steepest drop since October 2023. Year-over-year, home sales decreased by 1.1%, remaining 21.5% below pre-pandemic levels.