Realtors are facing an increasing number of indecisive buyers as market conditions prompt greater selectivity among home purchasers.
A report from Redfin revealed that nearly 56,000 home-purchase agreements were abandoned in June, translating to 15% of all homes that went under contract that month. This marks the highest percentage of cancellations recorded for June in the history of the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to buyers withdrawing over minor issues due to the burdensome monthly costs associated with homeownership in the current market. She explained that with expenses so steep, buyers are reluctant to compromise on their must-have list.
In Miami, fellow Redfin agent Rafael Corrales noted similar patterns, describing instances of “nightmare scenarios” where deals fell through at the last minute due to trivial details. Last month, approximately 2,500 home purchases were canceled in Miami, accounting for about 17.6% of homes under contract in June. Corrales emphasized that the primary concern for buyers is affordability.
June also saw the median home sale price soar to a record $442,525, while the average rate for a 30-year mortgage climbed to 6.92%. In addition to high home prices and mortgage rates, potential buyers are also facing increased costs from insurance, property taxes, and HOA fees, all of which have been worsened by inflation.
As a result of these affordability challenges, home sales across the country have experienced the most significant drop in eight months, according to Redfin. Monthly home sales fell by 0.5% in June, marking the largest decline since October 2023. Year-over-year, home sales decreased by 1.1% and were down 21.5% compared to pre-pandemic levels.