Realtors are experiencing an increase in buyers backing out of home purchases, as the current real estate market becomes more challenging and buyers grow more selective.
A report from Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, accounting for 15% of all homes that went under contract during that month. This figure marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, pointed to heightened buyer expectations as a key factor. She noted that buyers are withdrawing from deals over minor issues because the monthly costs of homeownership have become too significant to overlook without meeting their must-have criteria.
Rafael Corrales, another Redfin agent based in Miami, described “nightmare scenarios” arising from late cancellations due to trivial concerns. In June, approximately 2,500 home purchases were canceled in Miami, representing about 17.6% of the contracts initiated. Corrales indicated that the primary concern for buyers remains affordability.
The median home sale price hit a record $442,525 in June, alongside an average mortgage rate of 6.92% for a 30-year loan. Coupled with rising home prices, persistent mortgage rates, and additional expenses such as insurance, property taxes, and homeowners association fees— all intensified by inflation— prospective homebuyers are feeling increasingly constrained.
The national affordability crisis has led to the most significant decline in home sales in eight months, according to Redfin. Monthly home sales decreased by 0.5% in June, representing the largest fall since October 2023. Year-over-year, home sales declined by 1.1% and were 21.5% lower than pre-pandemic figures.