Realtors are currently witnessing an unprecedented number of indecisive buyers as people become increasingly selective in a challenging real estate market.
According to a report from Redfin released on Tuesday, nearly 56,000 home-purchase agreements were terminated in June, representing 15% of all homes that entered contract that month. This marks the highest percentage recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to buyers being more choosy amid escalating expenses. She noted, “They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list.”
Rafael Corrales, a Redfin agent in Miami, reported extreme cases, including last-minute cancellations over trivial details. In June, approximately 2,500 home purchases were canceled in Miami, accounting for about 17.6% of homes under contract that month. However, Corrales pointed out that the primary concern is affordability.
The median home sale price reached a record high of $442,525 in June, with the average 30-year mortgage rate at 6.92%. In addition to elevated home prices and persistently high mortgage rates, potential buyers are burdened by escalating costs associated with homeownership, including insurance, property taxes, and HOA fees, all intensified by inflation.
This nationwide affordability crisis has led to the most significant decline in home sales in eight months, as reported by Redfin. Home sales decreased by 0.5% in June—the largest monthly drop since October 2023. Year-over-year, sales fell by 1.1% and were down 21.5% compared to pre-pandemic levels.