Realtors are facing an increasing number of indecisive buyers as the real estate market becomes more challenging.
A recent Redfin report revealed that almost 56,000 home-purchase agreements were canceled in June, representing 15% of all homes under contract that month. This marks the highest percentage recorded for any June by the real estate site.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the rise in cancellations to a more discerning buyer demographic navigating an expensive market. She noted that buyers are withdrawing from deals over minor issues due to the high monthly costs associated with homeownership today.
In Miami, Redfin agent Rafael Corrales reported experiencing “nightmare scenarios,” including last-minute cancellations over trivial details. Approximately 2,500 home purchases were called off in Miami last month, accounting for about 17.6% of homes that went under contract in June. However, Corrales emphasized that the primary concern for buyers is affordability.
The median home sale price reached an all-time high of $442,525 in June, alongside an average 30-year mortgage rate of 6.92%. In addition to the steep home prices and persistent high mortgage rates, prospective buyers are also burdened by rising insurance, property taxes, homeowners association fees, and other ownership costs that inflation has further escalated.
The nationwide affordability crisis has led to a significant drop in home sales, marking the most considerable decline in eight months, according to Redfin. Monthly home sales fell by 0.5% in June, the largest decrease since October 2023. Year-over-year, home sales decreased by 1.1% and were down 21.5% compared to pre-pandemic levels.