Realtors are experiencing a surge in indecisive buyers as individuals grow more discerning in a challenging real estate environment.
In June, nearly 56,000 home-purchase agreements were abandoned, accounting for 15% of all homes that went under contract that month, according to a recent report from Redfin. This marks the highest percentage for any June recorded by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this increase in last-minute cancellations to buyers who are becoming overly selective amid rising costs in the housing market. She noted that potential buyers are reverting to their lists of essential features and are stepping back from deals for minor issues, stating, “The monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list.”
Rafael Corrales, another Redfin agent in Miami, reported encountering “nightmare scenarios,” including last-minute deal cancellations over trivial matters. In Miami alone, approximately 2,500 home purchases were scrapped last month, representing about 17.6% of homes that went under contract in June. Corrales emphasized that the primary concern remains affordability.
In June, the median home sale price hit a record high of $442,525, with the average rate for a 30-year mortgage reaching 6.92%. Coupled with elevated home prices and high mortgage rates, potential buyers are also facing additional financial burdens from insurance, property taxes, HOA fees, and all other associated costs that have been worsened by inflation.
The nationwide affordability crisis has driven home sales to experience their most significant decline in eight months, as reported by Redfin. In June, home sales fell by 0.5% compared to the previous month—the largest decrease since October 2023. Year-over-year data indicates a 1.1% drop in sales, with current sales figures standing 21.5% below pre-pandemic levels.