Realtors are facing an unprecedented number of buyers backing out of home purchases as consumers grow more selective in a challenging real estate market. A recent report from Redfin reveals that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that went under contract that month. This marks the highest percentage recorded by the platform for any June.
Julie Zubiate, a Redfin Premier real estate agent from the San Francisco Bay Area, attributes this trend to buyers’ concerns over financial commitments and high home prices. She noted that many are reconsidering purchases over minor issues as the costs associated with home ownership have risen significantly.
In Miami, Redfin agent Rafael Corrales reported experiencing “nightmare scenarios,” with numerous last-minute cancellations due to small details. Approximately 2,500 home purchases were canceled in the area last month, constituting about 17.6% of homes that went under contract. Corrales emphasized that the primary factor is affordability.
June saw the median home sale price reach a historic $442,525, alongside a 30-year mortgage rate average of 6.92%. The combination of elevated home prices, high mortgage rates, and additional costs such as insurance, property taxes, and homeowners’ association fees has made purchasing a home increasingly burdensome, particularly in light of inflation.
The nationwide affordability crisis has led to a significant decline in home sales, which experienced their largest drop in eight months, as indicated by Redfin. Home sales decreased by 0.5% in June compared to the previous month, marking the most substantial decline since October 2023. On a year-over-year basis, sales dipped 1.1% and were down 21.5% compared to pre-pandemic levels.