Real estate agents are experiencing an increase in buyers backing out of home purchases, with a more discerning clientele navigating a challenging market. A recent report from Redfin highlighted that nearly 56,000 home-purchase agreements were cancelled in June, accounting for 15% of contracts that month, marking the highest rate for June on record.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed this trend to buyers being particularly selective as they confront rising costs. She noted that buyers are withdrawing from deals over minor issues because the overall expense of homeownership has become too significant to ignore without ensuring all their preferences are met.
In Miami, Redfin agent Rafael Corrales reported experiencing “nightmare scenarios,” including last-minute cancellations driven by small details. In June, approximately 2,500 home purchases were called off in the area, representing about 17.6% of contracts that month. He emphasized that affordability remains the core issue for buyers.
The median home sale price reached an unprecedented $442,525 in June, with the average interest rate for a 30-year mortgage at 6.92%. In addition to elevated home prices and mortgage rates, buyers are also contending with increased costs from insurance, property taxes, homeowner association fees, and other related expenses, all worsened by inflation.
Nationwide, declining affordability in the housing market has led to a notable decrease in home sales, marking the largest drop in eight months, according to Redfin. Monthly home sales fell by 0.5% in June, representing the steepest decline since October 2023. Year-over-year, home sales decreased by 1.1% and remained 21.5% below the levels seen before the pandemic.