Realtors are experiencing an increasing number of home-buyers backing out of deals, with a recent report from Redfin highlighting significant challenges in the current real estate market. In June alone, nearly 56,000 home-purchase agreements collapsed, representing 15% of all homes that went under contract, marking the highest percentage ever recorded for June by the platform.
Julie Zubiate, a real estate agent with Redfin in the San Francisco Bay Area, attributes this trend to buyers becoming more selective, driven by rising market costs. She noted that potential homeowners are withdrawing due to minor concerns, as current monthly expenses related to home purchases have reached levels that make it difficult for buyers to settle for less than their desired list of features.
In Miami, agent Rafael Corrales reported witnessing alarming situations where buyers cancel deals at the last minute over minor details. In June, approximately 2,500 home purchases were canceled in Miami, amounting to about 17.6% of homes that entered contracts that month. Corrales emphasized that the primary challenge remains affordability.
The median price of homes sold climbed to a historic $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. This, coupled with escalating insurance, property tax, HOA fees, and various costs associated with owning a home—intensified by inflation—has discouraged many prospective buyers.
The national housing market’s affordability crisis has led to a notable decline in home sales, which experienced their largest drop in eight months according to Redfin. Home sales decreased by 0.5% from May to June, the steepest fall since October 2023, and showed a year-over-year decline of 1.1%, putting them 21.5% below pre-pandemic levels.