Realtors are witnessing an increasing number of buyers withdrawing from home purchases as market conditions become more challenging. A recent report from Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, representing 15% of all homes that went under contract that month. This is the highest recorded percentage for June in the company’s history.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to more selective buyers who are contending with high market prices. She noted that buyers are backing out over minor issues, primarily due to the substantial monthly costs associated with homeownership today.
In Miami, Redfin agent Rafael Corrales reported witnessing troubling situations, including last-minute cancellations based on minor details. Approximately 2,500 home purchases were canceled in Miami last month, making up about 17.6% of homes under contract in June. According to Corrales, the primary concern remains the affordability of homes.
The median home sale price reached a record $442,525 in June, with the average rate for a 30-year mortgage at 6.92%. Alongside expensive home prices and high mortgage rates, potential homebuyers are also facing rising insurance costs, property taxes, and homeowners’ association fees, all intensified by inflation.
Redfin’s data indicates that the nationwide lack of affordability has resulted in the biggest decline in home sales in eight months. On a monthly basis, home sales decreased by 0.5% in June, marking the largest drop since October 2023. Year-over-year, home sales also fell by 1.1% and were 21.5% below pre-pandemic levels.