Realtors are facing an increasing number of indecisive buyers as the real estate market proves to be challenging. A Redfin report released on Tuesday revealed that nearly 56,000 home-purchase agreements fell through in June, accounting for 15% of all homes that were under contract that month. This marks the highest cancellation rate for June recorded by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the rise in deal cancellations to buyers who are becoming increasingly discerning in a costly market. She noted, “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.”
Rafael Corrales, a Redfin agent in Miami, reported experiencing extreme situations, including last-minute cancellations over trivial details. In June, about 2,500 home purchases were canceled in Miami, which represents approximately 17.6% of homes that went under contract. However, Corrales stated that the primary concern is still affordability.
In June, the median home sale price hit a record high of $442,525, while the average rate for a 30-year mortgage climbed to 6.92%. Potential home buyers are also facing additional costs associated with homeownership, such as insurance, property taxes, and HOA fees, which have been exacerbated by inflation.
The affordability crisis in the housing market across the nation has led to a significant decline in home sales, according to Redfin. Monthly home sales decreased by 0.5% in June, marking the largest drop since October 2023. Comparatively, annual home sales dipped by 1.1% and were recorded at 21.5% below pre-pandemic levels.