Realtors are encountering an increasing number of indecisive buyers as individuals become more selective amidst a challenging real estate market.
According to a report from Redfin published on Tuesday, nearly 56,000 home-purchase agreements were cancelled in June, which accounts for 15% of all homes that were under contract during that month. This marks the highest percentage recorded for any June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the rise in cancellations to a more discerning buyer demographic facing elevated market prices. 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, another Redfin agent in Miami, reported experiencing “nightmare scenarios,” including last-minute cancellations over trivial details. Last month, approximately 2,500 home purchases were canceled in Miami, representing around 17.6% of homes that went under contract in June. Corrales highlighted that the primary concern for buyers is affordability.
In June, the median home sale price reached a record high of $442,525, while the average rate for a 30-year mortgage stood at 6.92%. Prospective buyers are facing additional challenges from rising insurance costs, property taxes, and homeowners’ association fees, along with overall inflation, all contributing to the burden of homeownership.
The nationwide lack of affordability has led to the most significant decline in home sales in eight months, according to Redfin. Month-over-month home sales in June fell by 0.5%, marking the largest decrease since October 2023. Year-over-year, home sales dipped by 1.1% and were 21.5% lower than pre-pandemic levels.