Realtors are experiencing an increase in anxious buyers as individuals become more selective in today’s challenging real estate market.
According to a report from Redfin published Tuesday, nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all homes that went under contract that month. This marks the highest percentage for June in the history of the real estate website.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this rise in cancellations to buyers who are more discerning due to the high costs associated with purchasing a home.
“Buyers are backing out over minor issues because the monthly expenses tied to buying a home today are too significant to justify not getting everything on their must-have list,” Zubiate noted.
Rafael Corrales, a Redfin agent in Miami, reported witnessing “nightmare scenarios,” including last-minute cancellations over trivial details. In Miami last month, approximately 2,500 home purchases were canceled, representing around 17.6% of homes under contract in June. He emphasizes that the primary concern is affordability.
The median home sale price hit a record high of $442,525 in June, while the average rate for a 30-year mortgage reached 6.92%. Coupled with steep home prices and elevated mortgage rates, potential home buyers are also burdened by rising insurance, property taxes, HOA fees, and other ownership-related costs intensified by inflation.
This nationwide affordability crisis has led to the most significant decline in home sales seen in eight months, as reported by Redfin. Month-over-month, home sales decreased by 0.5% in June, marking the largest drop since October 2023. Year-over-year, sales fell by 1.1% and were 21.5% lower than pre-pandemic levels.