Realtors are facing an increasing number of indecisive buyers as the real estate market presents significant challenges.
According to a report from Redfin, nearly 56,000 home purchase agreements collapsed in June, accounting for 15% of all homes that went under contract that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a real estate agent from Redfin Premier in the San Francisco Bay Area, attributes this trend to buyers becoming more selective due to the expensive market conditions. She noted that buyers are opting out of deals for minor issues because the financial burden of purchasing a home has grown too substantial to overlook.
Meanwhile, Rafael Corrales, a Redfin agent in Miami, highlighted “nightmare scenarios” where buyers canceled last minute due to small concerns. In Miami, about 2,500 home deals were canceled last month, representing approximately 17.6% of the contracts that were signed in June. Corrales identified affordability as the primary obstacle for many buyers.
In June, the median home sale price hit a record high of $442,525, while the average interest rate on a 30-year mortgage stood at 6.92%. The combination of high home prices, elevated mortgage rates, insurance costs, property taxes, homeowners association fees, and other expenses tied to homeownership—worsened by inflation—has put pressure on potential buyers.
The ongoing affordability crisis nationwide has led to a significant decline in home sales, marking the most substantial drop in eight months. Redfin reported that home sales decreased by 0.5% in June compared to the previous month, the largest reduction since October 2023. Year-over-year, home sales fell by 1.1% and were down 21.5% compared to levels before the pandemic.