Realtors are encountering an increasing number of hesitant buyers as the real estate market continues to present challenges.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, translating to 15% of all homes that were under contract during that month. This marks the highest percentage recorded for June by the real estate site.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this trend to buyers becoming more selective amid rising costs. “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,” Zubiate explained.
Rafael Corrales, another agent from Redfin in Miami, noted experiencing “nightmare scenarios” with last-minute cancellations over trivial details. In Miami alone, about 2,500 home purchases were canceled last month, representing roughly 17.6% of homes under contract in June. Corrales identified affordability as the primary concern for buyers.
The median home sale price reached an unprecedented $442,525 in June, with the average rate for a 30-year mortgage at 6.92%. In addition to the steep home prices and high mortgage rates, prospective homeowners are increasingly burdened by insurance, property taxes, HOA fees, and other costs linked to homeownership, all of which have been intensified by inflation.
This lack of affordability in the marketplace has contributed to a significant decline in home sales across the nation, marking the largest drop in eight months, according to Redfin. Month-over-month, home sales decreased by 0.5% in June, the steepest decline since October 2023. Year-over-year, sales fell 1.1% and were 21.5% below pre-pandemic levels.