Realtors are facing an unprecedented number of indecisive buyers, as the current real estate market drives people to be more selective in their home purchases.
A report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, which represents 15% of all homes that went under contract that month, marking the highest rate for any recorded June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the surge in buyer cancellations to heightened scrutiny and the challenges of an expensive 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, fellow Redfin agent Rafael Corrales described experiencing serious complications, including last-minute cancellations over minor details. Last month alone, around 2,500 home purchases were canceled in Miami, equating to about 17.6% of homes that went under contract. Corrales emphasized that the key issue is affordability.
June saw the median home sale price reach a record $442,525, while the average interest rate for a 30-year mortgage was reported at 6.92%. Buyers are also contending with insurance, property taxes, homeowners association fees, and escalating costs of homeownership driven by inflation.
The challenges of affordability have resulted in a significant decline in home sales nationwide, according to Redfin. Home sales experienced a monthly drop of 0.5% in June, being the largest decrease since October 2023. Year-over-year comparisons show a 1.1% decline in home sales, which remains 21.5% lower than levels seen before the pandemic.