Realtors are encountering an increasing number of indecisive buyers as individuals become more selective in a challenging real estate market.
According to a recent Redfin report, nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that went under contract that month. This marks the highest percentage recorded in June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes this trend to buyers who are hesitant due to high costs and their desire for every item on their wish list.
“They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to justify not having everything they want,” Zubiate stated.
Rafael Corrales, a Redfin agent in Miami, has witnessed concerning scenarios unfold, including last-minute cancellations over trivial matters. In June, around 2,500 home purchases were canceled in Miami, equating to approximately 17.6% of homes that went under contract that month. Corrales pointed out that the primary challenge remains affordability.
In June, the median home sale price surged to a record $442,525, while the average rate for a 30-year mortgage reached 6.92%. The combination of high home prices and persistent mortgage rates, alongside insurance, property taxes, HOA fees, and other homeownership costs, has been intensified by inflation.
The nationwide affordability crisis has led to a significant decline in home sales, which fell by 0.5% in June compared to the previous month—the largest drop since October 2023. Year over year, home sales decreased by 1.1% and remain 21.5% below levels seen before the pandemic.