Realtors are encountering more indecisive buyers than ever as a challenging real estate market leads to increased selectivity. A 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 for any June recorded by the platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the rise in cancellations to buyers who are becoming more discerning amid high costs. She noted that many are withdrawing from deals due to minor issues, as the financial burden of purchasing a home has become significant.
In Miami, Redfin agent Rafael Corrales reported observing “nightmare scenarios” with last-minute cancellations over trivial details. Approximately 2,500 home purchases were withdrawn in June, which represents about 17.6% of contracts in that market. Corrales emphasized that the primary concern for buyers is affordability.
The median home sale price hit a record high of $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. In addition to the steep prices of homes, potential buyers face substantial additional costs, including insurance, property taxes, and homeowners association fees, all of which have been aggravated by inflation.
Nationwide, the lack of affordability has resulted in the most significant drop in home sales in eight months, according to Redfin. Month-over-month, home sales decreased by 0.5% in June—the largest decline since October 2023. Year-over-year, sales fell by 1.1%, reflecting a staggering 21.5% drop compared to pre-pandemic figures.