Realtors are facing an increasing number of buyers pulling out of home purchases, as more individuals become selective in a challenging real estate market.
According to a report from Redfin, nearly 56,000 home-purchase agreements were abandoned in June, representing 15% of all homes that had been contracted that month. This rate marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the surge in cancellations to buyers becoming more discerning in response to a costly housing market. She noted, “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.”
Rafael Corrales, a Redfin agent operating in Miami, described encountering “nightmare scenarios” with last-minute cancellations over minor details. In June, around 2,500 home purchases were canceled in Miami, equating to about 17.6% of contracts. Corrales emphasized that affordability remains the primary concern for buyers.
The median sale price of homes hit a record high of $442,525 in June, with the average rate for a 30-year mortgage standing at 6.92%. In addition to elevated home prices and persistent mortgage rates, potential buyers are also contending with insurance, property taxes, HOA fees, and other ownership costs that have been aggravated by inflation.
Nationwide, the lack of affordability has led to the most significant drop in home sales in eight months, according to Redfin. Month-over-month, home sales decreased by 0.5% in June, marking the largest decline since October 2023. Year-over-year, sales fell by 1.1% and were 21.5% below levels seen before the pandemic.