Realtors are encountering an increasing number of indecisive buyers as the real estate market becomes more challenging and consumers become more discerning.
A recent report by Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, representing 15% of all homes that went under contract that month. This marks the highest percentage of failed agreements recorded for any June.
Julie Zubiate, a real estate agent with Redfin Premier in the San Francisco Bay Area, attributed this trend to buyers being more selective amid high market costs. She noted that many are withdrawing from deals over minor issues because the current monthly expenses of homeownership are significantly high, making it difficult to overlook preferences on their must-have lists.
In Miami, Redfin agent Rafael Corrales described witnessing “nightmare scenarios,” including last-minute cancellations over trivial details. Last month, approximately 2,500 home purchases were canceled in Miami, equating to about 17.6% of homes that were under contract in June. Corrales emphasized that the primary concern is affordability.
The median home sale price reached a record $442,525 in June, while the average rate on a 30-year mortgage stood at 6.92%. Alongside the elevated home prices and persistently high mortgage rates, prospective buyers are also facing additional burdens from insurance, property taxes, and homeowners association fees, all of which have been intensified by inflation.
The widespread affordability issues in the housing market have led to the most significant decline in home sales in eight months, as per Redfin. Monthly home sales experienced a 0.5% drop in June, marking the steepest decline since October 2023. Year-over-year, home sales decreased by 1.1%, standing 21.5% lower than pre-pandemic levels.