Realtors are increasingly facing challenges from buyers who are becoming more selective as they navigate a tough real estate market.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, representing 15% of all homes under contract that month. This marks the highest percentage for June recorded by the real estate site.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes the increase in buyers backing out to their heightened selectivity in response to a costly market. “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 stated.
In Miami, Redfin agent Rafael Corrales noted experiencing “nightmare scenarios” with last-minute cancellations over minor details. Approximately 2,500 home purchases were canceled in Miami last month, accounting for about 17.6% of homes that went under contract in June. Corrales emphasized that the primary concern remains affordability.
The median home sale price reached a peak of $442,525 in June, with the average rate on a 30-year mortgage at 6.92%. In addition to the high cost of homes, prospective buyers face added financial burdens from insurance, property taxes, HOA fees, and other costs tied to homeownership, all worsened by inflation.
This widespread lack of affordability has led to a significant decrease in home sales across the nation, marking the largest drop in eight months, according to Redfin. Monthly home sales declined by 0.5% in June, which is the steepest reduction since October 2023. Compared to the previous year, home sales fell by 1.1% and were 21.5% lower than pre-pandemic figures.