In June, nearly 56,000 home-purchase agreements were canceled, representing 15% of all homes that went under contract that month. This marks the highest level of cancellations recorded for June, according to a report from Redfin.
Julie Zubiate, a real estate agent with Redfin Premier in the San Francisco Bay Area, attributes the increase in cancellations to buyers becoming more selective in a challenging market, where costs are rising. She noted that buyers are withdrawing from deals over minor issues, as the current monthly expenses associated with home purchases are daunting.
In Miami, agent Rafael Corrales reported witnessing numerous last-minute cancellations driven by trivial details, with approximately 2,500 home purchases canceled last month, equating to about 17.6% of contracts. Corrales emphasized that affordability remains the central concern for prospective buyers.
The median home sale price reached an all-time high of $442,525 in June, while the average rate for a 30-year mortgage increased to 6.92%. Alongside elevated home prices and mortgage rates, buyers are also facing additional financial burdens, including insurance, property taxes, and homeowners association fees—factors that have been intensified by inflation.
The overall lack of affordability has led to the most significant decline in home sales seen in eight months. Month-over-month, home sales dropped by 0.5% in June, marking the steepest decrease since October 2023. Year-over-year, sales fell by 1.1% and were down 21.5% compared to pre-pandemic levels.