Realtors are facing an unprecedented number of hesitant buyers as consumer preferences grow more selective in the challenging real estate environment. According to a report from Redfin, nearly 56,000 home purchase agreements were canceled in June, representing 15% of all homes that entered contracts that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes the increasing number of cancellations to buyers who are more discerning and burdened by high market costs. “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, Redfin agent Rafael Corrales noted that he has witnessed extreme cases of last-minute cancellations driven by petty details. The city experienced around 2,500 canceled home purchases last month, amounting to about 17.6% of homes under contract in June. Corrales emphasized that the primary concern remains affordability.
In June, the median home sale price reached a record $442,525, while the average rate for a 30-year mortgage was 6.92%. Prospective buyers are also burdened by additional costs such as insurance, property taxes, and homeowners association fees, which have been amplified by inflation, creating further financial strain.
Nationwide, the affordability crisis in the real estate market has led to the most significant drop in home sales in eight months, as reported by Redfin. Monthly sales saw a decline of 0.5% in June, the largest decrease since October 2023. Year-over-year, home sales fell by 1.1% and were 21.5% lower than levels observed before the pandemic.