Realtors are facing an unprecedented number of indecisive buyers, as individuals become more selective in a challenging real estate market.
According to a report from Redfin, nearly 56,000 home-purchase agreements fell through in June, accounting for 15% of all contracts that month. This marks the highest cancellation rate recorded for any June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers being pickier amid rising market costs. “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,” Zubiate explained.
Rafael Corrales, another Redfin agent in Miami, reported experiencing “nightmare scenarios,” including last-minute cancellations over trivial details. In Miami alone, approximately 2,500 home purchases were canceled in June, which represents about 17.6% of homes that went under contract that month. Corrales pointed out that the primary concern is affordability.
The median home sale price hit a record $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. Coupled with high home prices and elevated mortgage rates, potential buyers are also contending with increased insurance, property taxes, homeowners association fees, and other homeownership-related costs, all of which have been driven higher by inflation.
This lack of affordability nationwide has led to the most significant decrease in home sales in eight months. Home sales fell by 0.5% in June compared to the prior month, marking the steepest decline since October 2023. Year-over-year, home sales decreased by 1.1% and were 21.5% lower than pre-pandemic figures.