Realtors are experiencing a significant increase in buyers pulling out of home-purchase agreements, with a report from Redfin highlighting that nearly 56,000 agreements fell through in June, representing 15% of all homes under contract that month. This marks the highest percentage recorded for a June in Redfin’s history.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to a more selective buyer base facing a challenging market. She noted that buyers are canceling deals over minor issues because the high costs of homeownership make it crucial for them to meet their must-have criteria.
Rafael Corrales, another Redfin agent based in Miami, reported witnessing extreme cases of last-minute cancellations for trivial reasons, with around 2,500 home purchases canceled in the area last month, making up about 17.6% of contracts. He emphasized that affordability remains the primary concern for these buyers.
In June, the median home sale price hit a record $442,525, while the average 30-year mortgage rate stood at 6.92%. Prospective homebuyers are also contending with rising costs related to insurance, property taxes, and HOA fees, all intensified by inflation.
This widespread issue of affordability has led to the largest decline in home sales in eight months, as reported by Redfin. Home sales slipped by 0.5% in June compared to the previous month, marking the most significant decrease since October 2023. Year-over-year, home sales fell by 1.1% and are now 21.5% lower than pre-pandemic figures.