Realtors are experiencing an increase in hesitant buyers as the real estate market grows more challenging. A recent report from Redfin reveals that in June, nearly 56,000 home-purchase agreements fell through, accounting for 15% of all homes that were under contract that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributes the rise in cancellations to more selective buyers who are facing a market with high costs. She noted that many buyers are backing out over minor issues since the monthly expenses of homeownership have become too significant to overlook.
Similarly, Rafael Corrales, a Redfin agent in Miami, reported experiencing “nightmare scenarios” where last-minute cancellations occur due to trivial details. In June, approximately 2,500 home purchases were canceled in Miami, representing 17.6% of homes under contract. Corrales highlighted that affordability remains the primary concern for buyers.
June saw the median home sale price reach a staggering $442,525, with the average rate for a 30-year mortgage at 6.92%. The combination of high home prices, elevated mortgage rates, and additional costs such as insurance, property taxes, and homeowners association fees—compounded by inflation—has made it increasingly difficult for potential buyers.
This widespread lack of affordability has led to the most significant decline in home sales in eight months, per Redfin’s findings. Home sales dropped 0.5% month-over-month in June, marking the largest decrease since October 2023. Year-over-year, home sales also fell by 1.1% and were 21.5% lower than pre-pandemic levels.