Realtors are encountering a growing trend of hesitant buyers in a challenging real estate landscape.
A report from Redfin revealed that nearly 56,000 home purchase agreements were canceled in June, representing 15% of all homes that went under contract that month—the highest rate recorded for any June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers who are becoming more selective in a market marked by rising costs. She noted that “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 described “nightmare scenarios” of last-minute cancellations over trivial details, indicating that about 2,500 home purchases were canceled in June, which equates to approximately 17.6% of homes that went under contract. Corrales emphasized that the chief concern for many buyers is affordability.
The median home sale price reached a record $442,525 in June, accompanied by a 30-year mortgage average rate of 6.92%. Prospective homebuyers are further burdened by additional costs, including insurance, property taxes, and HOA fees, all of which have been impacted by inflation.
This affordability crisis has led to a significant decline in nationwide home sales, marking the largest drop in eight months. According to Redfin, home sales fell by 0.5% in June compared to the previous month—the biggest decrease since October 2023. Year-over-year, home sales dropped by 1.1% and were 21.5% lower than pre-pandemic levels.