Realtors are facing an increase in buyers backing out of home purchases, with many becoming more selective in the current challenging real estate market. A recent report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that were under contract during that month. This marks the highest percentage ever recorded for June by the real estate website.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed this trend to buyers who are hesitant to commit due to rising costs. She noted that prospective buyers are withdrawing from deals over minor issues, as the financial burden of homeownership can be overwhelming.
In Miami, another Redfin agent, Rafael Corrales, described some dire situations where last-minute cancellations occurred over trivial matters. Approximately 2,500 home deals were canceled in Miami in June, accounting for about 17.6% of homes that went under contract. Corrales pointed out that the primary concern for buyers remains affordability.
In June, the median home sale price reached a record $442,525, with the average 30-year mortgage rate at 6.92%. Buyers are also facing additional financial pressures from insurance, property taxes, and homeowners’ association fees, all of which have been intensified by inflation.
The nationwide affordability crisis has significantly impacted home sales, leading to the most considerable decline in eight months, according to Redfin. On a month-to-month basis, home sales dropped by 0.5% in June, marking the largest decrease since October 2023. Year-over-year, home sales saw a 1.1% decline and were 21.5% below pre-pandemic figures.