Realtors are encountering an unprecedented number of hesitant buyers, as individuals grow more discerning in a challenging real estate environment.
Recent data from Redfin reveals that nearly 56,000 home-purchase agreements fell through in June, representing 15% of all homes that went under contract that month. This marks the highest percentage recorded for June by the real estate site.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers who are becoming more selective in light of rising costs in the market.
“They’re withdrawing due to minor issues because the financial commitments tied to purchasing a home today are simply too significant to overlook their essentials,” Zubiate noted.
Rafael Corrales, another Redfin agent based in Miami, reported seeing “nightmare scenarios,” including last-minute cancellations triggered by small details. In June alone, around 2,500 home purchases were canceled in Miami, representing about 17.6% of homes under contract. However, Corrales emphasizes that the primary concern remains affordability.
June marked a record median home sale price of $442,525, while the average rate for a 30-year mortgage reached 6.92%. The high prices of homes, coupled with elevated mortgage rates, have left potential buyers burdened with additional costs, such as insurance, property taxes, and HOA fees—all intensified by inflation.
The nationwide affordability crisis has led to a significant decline in home sales, the largest in eight months. According to Redfin, home sales dropped by 0.5% in June compared to the previous month—the steepest decline since October 2023. Year-over-year, home sales fell by 1.1%, standing at 21.5% below pre-pandemic levels.