Realtors are encountering an unprecedented number of indecisive buyers as home shoppers grow increasingly selective in a challenging real estate climate.
A recent report from Redfin highlighted that nearly 56,000 home-purchase agreements collapsed in June, representing 15% of all homes that went under contract that month. This marks the highest percentage ever recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the uptick in buyer pullouts to a more discerning clientele facing a prohibitively expensive market. She noted, “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.”
Rafael Corrales, a Redfin agent in Miami, reported witnessing “nightmare scenarios,” including last-minute cancellations over trivial concerns. Last month, around 2,500 home purchases in Miami were canceled, equating to about 17.6% of homes that went under contract in June. Corrales emphasized that affordability remains the biggest challenge.
The median home sale price reached a record high of $442,525 in June, with the average interest rate for a 30-year mortgage at 6.92%. Alongside the elevated cost of homes and persistent high mortgage rates, potential home buyers are also grappling with additional expenses such as insurance, property taxes, and HOA fees—all worsened by inflation.
This nationwide lack of affordability has led to a significant drop in home sales, marking the largest decline in eight months, according to Redfin. Month-over-month, home sales dipped by 0.5% in June, the steepest drop since October 2023. Year-over-year, home sales fell by 1.1%, and they are now 21.5% below pre-pandemic levels.