Realtors are facing an increasing number of indecisive buyers as the challenging real estate market makes individuals more selective about their home purchases.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that went under contract that month, marking the highest percentage recorded for June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, stated that buyers are hesitating over minor issues because the high costs associated with purchasing a home today lead them to seek perfection in their must-have lists.
Rafael Corrales, a Redfin agent based in Miami, noted he has witnessed “nightmare scenarios,” including last-minute cancellations over trivial details. Approximately 2,500 home purchases were called off in Miami in June, accounting for about 17.6% of homes that went under contract there. Corrales pointed out that the primary concern remains affordability.
In June, the median home sale price reached an unprecedented $442,525, while the average rate on a 30-year mortgage was 6.92%. Prospective buyers are also facing additional financial burdens from insurance, property taxes, HOA fees, and other costs tied to homeownership, which have been intensified by inflation.
The overall lack of affordability in the housing market has led to the most significant decline in home sales in eight months, as reported by Redfin. Monthly home sales dipped by 0.5% in June, the largest decrease since October 2023. Year-over-year, home sales fell by 1.1% and were down 21.5% from pre-pandemic levels.