In the current real estate climate, realtors are facing an unprecedented number of buyers backing out of home purchase agreements. A recent report from Redfin revealed that nearly 56,000 home-purchase deals collapsed in June, representing 15% of all homes that went under contract that month, marking the highest percentage recorded for any June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to increasingly selective buyers who are struggling with the high costs of homeownership. She noted that clients are withdrawing from deals over minor issues because the financial burdens tied to purchasing a home are significant.
Similarly, Rafael Corrales, a Redfin agent in Miami, reported witnessing “nightmare scenarios,” with numerous last-minute cancellations over trivial details. In Miami alone, approximately 2,500 home purchases were canceled in June, accounting for around 17.6% of homes that were under contract. Corrales underscored that issues related to affordability are the primary concern.
The median home sale price hit a record $442,525 in June, alongside an average 30-year mortgage rate of 6.92%. With the combined pressures of high home prices, elevated mortgage rates, and additional costs such as insurance, property taxes, and homeowners association fees—compounded by inflation—prospective buyers are facing substantial financial obstacles.
This unaffordability has led to a significant decline in home sales nationwide, with Redfin noting that sales fell by 0.5% in June, marking the steepest drop since October 2023. Year-over-year, home sales decreased by 1.1%, reaching 21.5% below pre-pandemic levels.