Realtors are currently facing an unprecedented number of buyers backing out of home purchases, as preferences shift in a challenging real estate environment.
A recent Redfin report highlighted that approximately 56,000 home-purchase agreements were abandoned in June, accounting for 15% of all homes under contract that month. This marks the highest percentage of cancellations recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributed the increase in buyers withdrawing to a more selective approach influenced by the high costs in the current market. She noted that buyers are reconsidering their decisions for seemingly trivial reasons because the overall expenses tied to homeownership are rising to a level where they feel compelled to ensure every preference is met.
In Miami, fellow Redfin agent Rafael Corrales reported experiencing “nightmare scenarios,” with clients canceling purchases last-minute over minor details. In June, around 2,500 home purchases were canceled in Miami, representing about 17.6% of homes that went under contract. Corrales emphasized that affordability remains the primary concern for homebuyers.
The median home sale price surged to a record $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. Additionally, potential buyers are burdened by increased insurance costs, property taxes, HOA fees, and other expenses related to homeownership that have been worsened by inflation.
The nationwide affordability crisis has led to the most significant drop in home sales seen in eight months, as indicated by Redfin. Month-over-month, home sales decreased by 0.5% in June, marking the steepest decline since October 2023. Year-over-year, sales fell by 1.1% and remained 21.5% below pre-pandemic levels.