Realtors are facing an increasing number of fickle buyers as individuals become more discerning in a challenging real estate environment.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all homes that went under contract that month. This marks the highest cancellation rate 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 buyers backing out to higher expectations in a costly market. She stated, “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.”
In Miami, agent Rafael Corrales reported experiencing “nightmare scenarios,” including last-minute cancellations over trivial matters. In June, around 2,500 home purchases were canceled in Miami, representing approximately 17.6% of homes that entered contracts that month. He highlighted affordability as the most significant concern.
In June, the median home sale price set a new record at $442,525, with the average rate for a 30-year mortgage reaching 6.92%. Prospective buyers are further burdened by rising insurance costs, property taxes, HOA fees, and other expenses tied to homeownership, all of which have been intensified by inflation.
This affordability crisis has led to the most significant decrease in home sales across the nation in eight months, as reported by Redfin. Monthly home sales saw a decline of 0.5% in June, the largest drop since October 2023. Compared to the previous year, home sales were down 1.1% and remained 21.5% lower than pre-pandemic figures.