Realtors are facing an increasing number of hesitant buyers as individuals become more selective in a challenging real estate market. According to a report by Redfin, nearly 56,000 home-purchase agreements were abandoned in June, representing 15% of all contracts that month, marking the highest percentage for June on record.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributed the surge in cancellations to buyers being more discerning in the current expensive market. “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,” she explained.
In Miami, Redfin agent Rafael Corrales observed what he described as “nightmare scenarios,” including last-minute dropouts over trivial matters. Approximately 2,500 home purchases were canceled in Miami last month, equating to about 17.6% of homes under contract in June, with Corrales noting that the primary concern remains affordability.
In June, the median home sale price hit a new high of $442,525, while the average rate for a 30-year mortgage was recorded at 6.92%. In addition to the elevated house prices, potential buyers are also burdened by insurance, property taxes, HOA fees, and other homeownership costs that have been intensified by inflation.
The nationwide affordability crisis has led to the most significant decline in home sales in eight months, as reported by Redfin. Home sales decreased by 0.5% in June, marking the largest drop since October 2023. Compared to the same month last year, home sales have fallen by 1.1% and are now 21.5% below pre-pandemic figures.