Realtors are experiencing an unprecedented number of buyers backing out of home purchases as the real estate market becomes increasingly challenging. 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 percentage of cancellations recorded for June since tracking began.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this rise in cancellations to buyers who are becoming more selective in response to a market with escalating prices. She noted that many buyers are retreating over minor issues, as the financial implications of purchasing a home are daunting.
Miami-based agent Rafael Corrales also shared insights on the trend, describing some cancellations as “nightmare scenarios” triggered by small details. Approximately 2,500 home purchases were canceled in Miami last month, representing about 17.6% of homes under contract in June. Corrales highlighted that the main challenge lies in affordability.
The median home sale price reached a record high of $442,525 in June, coinciding with an average 30-year mortgage rate of 6.92%. In addition to high home prices and mortgage rates, prospective buyers are grappling with increased costs related to insurance, property taxes, and HOA fees—all of which have been exacerbated by inflation.
This lack of affordability has led to a significant drop in home sales nationwide, marking the largest decline in eight months. Redfin reported that home sales decreased by 0.5% in June compared to the previous month, the steepest fall since October 2023. Comparatively, year-over-year sales saw a dip of 1.1% and were 21.5% lower than pre-pandemic levels.