Realtors are facing an increasing number of indecisive buyers as the real estate market becomes more challenging. A report from Redfin revealed that nearly 56,000 home-purchase agreements were abandoned in June, representing 15% of all homes that went under contract during that month. This marks the highest rate of withdrawals recorded for June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to buyers being more selective as they navigate a costly market. She noted, “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 reported observing “nightmare scenarios,” including last-minute cancellations over trivial concerns. Approximately 2,500 home purchases were called off in Miami in June, which accounts for about 17.6% of contracted homes. Corrales emphasized that the primary issue for buyers is affordability.
The median home sale price hit a record $442,525 in June, with the average rate for a 30-year mortgage at 6.92%. Buyers are also faced with additional financial burdens such as insurance, property taxes, and homeowners association fees, all heightened by inflation.
The national affordability crisis has led to a significant decline in home sales, with Redfin noting the largest drop in eight months. Month-over-month, home sales decreased by 0.5% in June, marking the biggest slide since October 2023. Year-over-year, sales fell by 1.1% and dropped by 21.5% compared to pre-pandemic figures.