Realtors are facing an increasing number of buyers backing out of home purchases, as prospective buyers become more selective in a challenging real estate landscape.
A recent report from Redfin revealed that nearly 56,000 home purchase agreements were canceled in June, equating to 15% of all homes that went under contract that month. This marks the highest percentage of cancellations recorded in June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this trend to buyers being more discerning. She noted that many are retreating from deals over minor concerns, as the overall monthly costs related to home buying have become too significant to accept compromises.
Miami’s real estate landscape echoes this sentiment. According to Rafael Corrales, another Redfin agent, “nightmare scenarios” have arisen where buyers pull out last-minute due to small details. Approximately 2,500 home purchases were canceled in Miami in June, representing about 17.6% of homes that went under contract in that period. Corrales highlighted that the primary challenge remains affordability.
June also saw the median home sale price reach a historic $442,525, with the average interest rate on a 30-year mortgage recorded at 6.92%. In addition to high home prices and elevated mortgage rates, buyers are also confronting rising expenses from insurance, property taxes, and HOA fees, all of which have been intensified by inflation.
Consequently, the national lack of affordability in the housing market has led to the most significant decline in home sales in eight months, according to Redfin. Month-over-month, home sales dropped by 0.5% in June, marking the largest decrease since October 2023. Year-over-year, home sales decreased by 1.1%, falling 21.5% below levels experienced before the pandemic.