Realtors are encountering more fickle buyers than ever as individuals grow choosier amid a challenging real estate environment.
A report from Redfin reveals that nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all homes that went under contract that month, marking the highest percentage for any June recorded by the real estate website.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this uptick in cancellations to a more discerning buyer demographic dealing with the pressures of a costly market. “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 noted.
Rafael Corrales, another Redfin agent based in Miami, described seeing “nightmare scenarios” unfold, including last-minute cancellations over trivial matters. Approximately 2,500 home purchases were called off in Miami last month, representing about 17.6% of homes that went under contract in June. Corrales highlighted that affordability remains the primary concern.
The median home sale price hit a record $442,525 in June, with the average rate for a 30-year mortgage at 6.92%. In addition to high home prices and elevated mortgage rates, potential buyers are facing increased costs related to insurance, property taxes, HOA fees, and other homeownership expenses intensified by inflation.
This affordability crisis has triggered a significant decline in home sales nationwide, as Redfin reports that sales fell by 0.5% in June—the largest decrease since October 2023. Year-over-year, home sales decreased by 1.1% and remain 21.5% below pre-pandemic levels.