Realtors are facing a surge of indecisive buyers in a challenging real estate market, with many buyers becoming increasingly selective.
According to a report from Redfin, nearly 56,000 home-purchase agreements were abandoned in June, representing 15% of all homes that entered contract that month. This marks the highest cancellation rate recorded for any June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers who are now more particular in their demands, especially given the heightened costs associated with purchasing a home.
“Buyers are pulling back over minor issues because the monthly expenses related to buying a home today are just too significant to overlook not getting everything on their wish list,” Zubiate explained.
Rafael Corrales, a Redfin agent in Miami, reported witnessing “nightmare scenarios” with last-minute deal cancellations over trivial matters. In Miami alone, around 2,500 home purchases were canceled in June, accounting for approximately 17.6% of homes that went under contract. Corrales emphasized that affordability remains the foremost concern.
The median home sale price in June hit a record high of $442,525, while the average rate for a 30-year mortgage reached 6.92%. In addition to steep home prices and elevated mortgage rates, potential buyers are also facing rising costs related to insurance, property taxes, HOA fees, and other homeownership expenses, which have been intensified by inflation.
This pervasive lack of affordability has resulted in a notable decline in home sales across the nation, as reported by Redfin. Month-over-month, home sales dropped by 0.5% in June, marking the most significant decline since October 2023. Year-over-year, sales fell by 1.1%, and were 21.5% below pre-pandemic levels.