Realtors are encountering an unprecedented number of indecisive buyers as individuals become increasingly selective in a challenging real estate environment.
A recent report from Redfin reveals that nearly 56,000 home-purchase agreements collapsed in June, representing 15% of all contracts that month. This marks the highest cancellation rate recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed the surge in cancellations to buyers who are struggling with higher market costs.
“They’re withdrawing due to minor issues because the monthly expenses tied to buying a home are now too high to justify not getting everything on their essential list,” Zubiate explained.
Rafael Corrales, another agent from Redfin in Miami, described having witnessed “nightmare scenarios” that include last-minute pullouts over trivial matters. In Miami alone, around 2,500 home purchases were canceled last month, which is roughly 17.6% of homes that were under contract in June. Corrales noted that the primary concern is the issue of affordability.
In June, the median home sale price soared to a record $442,525, with the average 30-year mortgage rate reaching 6.92%. Added to the elevated home prices and sustained high mortgage rates, potential buyers are also faced with rising insurance costs, property taxes, homeowners association fees, and other expenses linked to homeownership, all of which have been exacerbated by inflation.
The growing affordability crisis has led to a significant decline in home sales across the nation, with Redfin reporting a 0.5% month-over-month decrease in June—the steepest drop since October 2023. Year-over-year, home sales fell by 1.1% and were 21.5% lower than pre-pandemic levels.