Realtors are facing an unprecedented number of withdrawn home purchase agreements as buyers grow increasingly selective in a challenging real estate market. According to a recent report from Redfin, nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that went under contract that month. This marks the highest percentage of cancellations for any June on record for the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributes the surge in withdrawals to buyers who are hesitant to commit in light of soaring home costs. 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.”
In Miami, Redfin agent Rafael Corrales reported troubling last-minute cancellations over small details, with approximately 2,500 home purchases canceled last month, amounting to about 17.6% of contracts. Corrales emphasized that the overarching concern for buyers is affordability.
In June, the median home sale price hit a record high of $442,525, while the average 30-year mortgage rate climbed to 6.92%. Adding to the financial burden, buyers face rising insurance costs, property taxes, homeowners association fees, and other expenses associated with homeownership, all intensified by inflation.
This widespread lack of affordability has led to a significant decline in home sales across the country, with Redfin reporting the steepest drop in eight months. Month-over-month sales fell by 0.5% in June—marking the largest decrease since October 2023—and year-over-year, sales dipped by 1.1%, which is 21.5% lower than pre-pandemic levels.