Realtors are facing more indecisive buyers than ever as individuals become more selective in a challenging real estate landscape.
According to a report from Redfin, nearly 56,000 home-purchase agreements collapsed in June, representing 15% of all homes that entered into contract that month. This marks the highest percentage recorded for June by the real estate company.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed the increase in canceled deals to buyers who are increasingly discerning in a costly market.
“They’re pulling out over minor issues because the monthly expenses tied to purchasing a home today are simply too high to justify not getting everything on their must-have list,” Zubiate explained.
Rafael Corrales, a Redfin agent in Miami, noted that he has witnessed “nightmare scenarios,” with last-minute cancellations driven by minor details. Approximately 2,500 home purchases were canceled in Miami last month, accounting for around 17.6% of contracts. However, Corrales emphasized that affordability remains the key issue.
In June, the median home sale price hit a record $442,525, while the average rate for a 30-year mortgage reached 6.92%. In addition to high home prices and still-elevated mortgage rates, potential buyers are also burdened by insurance, property taxes, HOA fees, and other ownership costs, all worsened by inflation.
The ongoing affordability crisis in the market has led to a significant decline in home sales nationwide, as reported by Redfin. Month-over-month, home sales dropped by 0.5% in June, the largest decrease since October 2023. On a year-over-year basis, sales fell by 1.1% and are currently 21.5% lower than pre-pandemic levels.