Realtors are facing an increasing number of indecisive buyers as the real estate market grows more challenging. A recent report from Redfin indicates that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all contracts for the month. This marks the highest percentage of cancellations recorded in June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers becoming more selective as they navigate an 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.”
Meanwhile, Rafael Corrales, a Redfin agent based in Miami, reported experiencing “nightmare scenarios” with last-minute cancellations over small details. In June, approximately 2,500 home purchases were canceled in Miami, accounting for about 17.6% of homes that went under contract. Corrales highlighted that the primary concern for buyers is affordability.
The median home sale price in June reached a record $442,525, with the average 30-year mortgage rate at 6.92%. In addition to high home prices and elevated mortgage rates, home buyers are contending with costs such as insurance, property taxes, homeowner association fees, and other expenses associated with homeownership that have been impacted by inflation.
This widespread lack of affordability has led to a significant decline in home sales nationwide, with Redfin reporting the most considerable decrease in eight months. Home sales fell by 0.5% in June compared to the previous month, representing the largest drop since October 2023. Year-over-year, home sales dipped by 1.1%, placing them 21.5% below pre-pandemic levels.