Realtors are encountering an increasing number of hesitant buyers as the real estate market becomes more challenging. According to a report from Redfin, nearly 56,000 home-purchase agreements fell through in June, representing 15% of all homes that were under contract that month. This marks the highest percentage ever recorded for June by the real estate site.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed the trend to buyers who are becoming more selective in their choices amid a costly market. She noted that many buyers are withdrawing from deals over minor issues, citing that the financial burden of purchasing a home today is substantial enough to warrant their exacting standards.
In Miami, Redfin agent Rafael Corrales observed what he termed “nightmare scenarios,” with last-minute cancellations occurring over trivial details. Approximately 2,500 home purchases were canceled in Miami last month, amounting to about 17.6% of homes that went under contract during June, highlighting affordability as the most significant challenge.
The median home sale price hit a record high of $442,525 in June, while the average 30-year mortgage rate was recorded at 6.92%. With high home prices, elevated mortgage rates, and additional costs like insurance, property taxes, and HOA fees—all worsened by inflation—many prospective buyers are finding the overall expenses of homeownership overwhelming.
As a result of these affordability issues, home sales have seen their most significant decline in eight months. Redfin reported a 0.5% drop in home sales in June compared to the previous month, marking the largest decrease since October 2023. Year-over-year, home sales decreased by 1.1% and were 21.5% below levels seen before the pandemic.