Realtors are facing an unprecedented number of homebuyers backing out of deals as preferences shift in a challenging real estate environment. According to a Redfin report released Tuesday, nearly 56,000 home-purchase agreements were canceled in June, making up 15% of all homes that went under contract that month, representing the highest rate for June recorded by the platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, pointed out that buyers are becoming more discerning due to the current high costs associated with home buying. “They’re backing out due to minor issues because the monthly costs linked to purchasing a home today are too significant to overlook without meeting all their must-have criteria,” she explained.
Rafael Corrales, another Redfin agent based in Miami, described witnessing troubling scenarios unfold, such as last-minute cancellations stemming from trivial details. Last month, approximately 2,500 home purchases were called off in Miami, equating to about 17.6% of homes that went under contract in June. Corrales highlighted the main concern as being affordability.
In June, the median home sale price hit a historic high of $442,525, alongside an average 30-year mortgage rate of 6.92%. Buyers are also facing added burdens from insurance, property taxes, HOA fees, and other ownership costs that have been driven up by inflation.
This widespread lack of affordability across the country has contributed to a notable decline in home sales, marking the steepest drop in eight months, as reported by Redfin. Home sales saw a decrease of 0.5% in June compared to the previous month—the largest decline since October 2023. Compared to the same time last year, home sales fell 1.1%, and they remain 21.5% below pre-pandemic levels.