In a challenging real estate market, realtors are encountering an increasing number of buyers who are hesitant to finalize their purchases. A recent report from Redfin indicates that in June, nearly 56,000 home-purchase agreements were canceled, representing 15% of all contracts for that month. This marks the highest rate recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes this trend to a more selective buyer demographic facing high market costs. She noted that buyers are withdrawing from deals due to minor issues, as the associated monthly expenses of homeownership are more daunting than ever.
In Miami, another Redfin agent, Rafael Corrales, has witnessed troubling scenarios where last-minute cancellations have occurred over trivial matters. Approximately 2,500 home purchases were scrapped in Miami last month, accounting for 17.6% of homes that were under contract in June. Corrales highlighted that the primary issue for many buyers is affordability.
June saw the median home sale price rise to a record $442,525, while the average rate for a 30-year mortgage was 6.92%. Alongside the high cost of homes, prospective buyers also face burdens from insurance, property taxes, homeowners association fees, and other expenses that have been intensified by inflation.
This lack of affordability across the nation has led to the most significant decline in home sales in eight months, according to Redfin. Monthly home sales decreased by 0.5% in June, representing the largest decline since October 2023. On an annual basis, home sales fell by 1.1% and were 21.5% lower than levels observed prior to the pandemic.