Realtors are encountering an increasing number of indecisive buyers as individuals grow more discerning in a challenging real estate environment.
A recent report from Redfin reveals that nearly 56,000 home-purchase agreements were abandoned in June, representing 15% of all homes that went under contract during that month. This marks the highest rate recorded for any June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes the surge in buyer hesitancy to a more selective clientele facing steep market prices. “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 commented.
Rafael Corrales, another Redfin agent based in Miami, expressed concern over “nightmare scenarios” in which buyers cancel deals at the last minute due to trivial details. Last month in Miami, approximately 2,500 home purchases were canceled, equating to roughly 17.6% of homes that went under contract in June. Corrales pointed out that the primary issue remains affordability.
In June, the median home sale price reached an unprecedented $442,525, with the average rate for a 30-year mortgage at 6.92%. Coupled with the elevated home prices and ongoing high mortgage rates, potential buyers are also facing additional burdens from insurance, property taxes, HOA fees, and other costs associated with homeownership, all intensified by inflation.
The widespread lack of affordability has led to a notable drop in home sales across the nation, with Redfin reporting the most significant decline in eight months. On a monthly basis, home sales decreased by 0.5% in June—the largest fall since October 2023. Year-over-year, home sales fell by 1.1% and were 21.5% lower than pre-pandemic levels.