Real estate agents are experiencing an increase in hesitant buyers as individuals become more selective in the current challenging housing market.
According to a report from Redfin, nearly 56,000 home-purchase agreements fell through in June, amounting to 15% of all homes that went under contract during the month. This marks the highest cancellation rate ever documented for June by the company.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attribute the surge in withdraws to buyers who are facing high costs. She noted that buyers are backing out due to minor concerns, citing that the financial burden of purchasing a home today leaves little room for compromises.
Rafael Corrales, another Redfin agent in Miami, described witnessing “nightmare scenarios,” where clients cancel deals at the last minute due to insignificant details. Approximately 2,500 home purchases were canceled in Miami last month, representing around 17.6% of contracts. Corrales emphasized that the main challenge remains affordability.
The median home sale price reached an unprecedented $442,525 in June, while the average rate for a 30-year mortgage was 6.92%. Alongside elevated home prices and high mortgage rates, potential buyers are further strained by additional costs, such as insurance, property taxes, and homeowners association fees—all heightened by inflation.
Overall, the ongoing lack of affordability across the nation has led to the most significant decline in home sales in eight months, as reported by Redfin. On a monthly basis, home sales decreased by 0.5% in June—the largest drop since October 2023. Year-over-year, home sales fell by 1.1% and are 21.5% lower than pre-pandemic figures.