Realtors are facing an increasing number of buyers backing out of agreements as the real estate market becomes more challenging. According to a report from Redfin, nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all contracts that month—the highest rate recorded for June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to buyers being more selective in a costly market. She explains that many are withdrawing due to minor concerns because the overall expenses tied to purchasing a home are too high to overlook.
In Miami, Redfin agent Rafael Corrales reported “nightmare scenarios” where buyers cancel deals at the last moment over trivial details. Approximately 2,500 home purchases were canceled in the city last month, representing about 17.6% of contracts signed in June. Corrales emphasized that the main issue is affordability.
In June, the median home sale price hit a record $442,525, with the average rate for a 30-year mortgage at 6.92%. Prospective buyers are struggling with high home prices, elevated mortgage rates, and rising expenses such as insurance, property taxes, and homeowner association fees, all worsened by inflation.
The national decline in affordability has led to a significant drop in home sales, marking the largest monthly decrease in eight months. Redfin reported a 0.5% reduction in home sales for June—the steepest decline since October 2023. Year-over-year, sales decreased by 1.1%, and were down 21.5% compared to pre-pandemic levels.