Real estate agents are facing a surge of indecisive buyers as individuals become increasingly selective in a challenging housing market. According to a report from Redfin, nearly 56,000 home purchase agreements were canceled in June, representing 15% of all homes that went under contract during that month. This marks the highest percentage ever recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier agent based in the San Francisco Bay Area, attributes the rise in cancellations to buyers who are concerned about affordability in a pricey market. She noted, “Buyers are opting out due to minor issues because the monthly costs tied to homeownership are excessively high, making it hard for them to settle for anything less than their ideal requirements.”
In Miami, Redfin agent Rafael Corrales described witnessing “nightmare scenarios” of last-minute cancellations over trivial details. Last month, approximately 2,500 home purchases were called off in the area, which accounts for around 17.6% of contracts in June. Corrales emphasized that affordability is the primary challenge facing potential buyers.
The median home sale price hit a record high of $442,525 in June, with the average 30-year mortgage rate at 6.92%. In addition to steep home prices and elevated mortgage rates, prospective buyers are also dealing with rising costs related to insurance, property taxes, and homeowners association fees, all aggravated by inflation.
This nationwide affordability crisis has contributed to the most significant decline in home sales in eight months, as reported by Redfin. Home sales fell by 0.5% in June compared to the previous month, the largest decrease since October 2023. On a year-over-year basis, sales dropped by 1.1% and were 21.5% lower when compared to pre-pandemic levels.