Realtors are encountering an unprecedented number of indecisive buyers as individuals become more selective in a challenging real estate market.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements were abandoned in June, accounting for 15% of all homes that entered into contract that month. This marks the highest percentage recorded for any June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the increase in buyer hesitation to a market that has become pricier. “Buyers are withdrawing due to minor issues because the monthly expenses tied to purchasing a home today are simply too high to overlook,” Zubiate stated.
Miami-based Redfin agent Rafael Corrales described some challenging situations, including last-minute cancellations over trivial concerns. He reported that around 2,500 home purchases were canceled in Miami last month, representing approximately 17.6% of homes contracted in June. Corrales highlighted that the primary concern for many is affordability.
The median home sale price surged to a record $442,525 in June, while the average rate for a 30-year mortgage approached 6.92%. In addition to high home prices and elevated mortgage rates, potential buyers are feeling the financial strain from insurance, property taxes, HOA fees, and other costs associated with homeownership, all of which have been worsened by inflation.
The national unavailability of affordable housing has led to a significant drop in home sales, marking the steepest decline in eight months, as reported by Redfin. Monthly sales decreased by 0.5% in June, representing the largest decline since October 2023. Year-over-year, home sales were down 1.1% and were 21.5% lower than pre-pandemic levels.