Realtors are facing an unprecedented number of indecisive buyers, as individuals become more selective in a challenging real estate market.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all homes that were under contract that month. This marks the highest percentage recorded for June by the real estate site.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributed the increase in buyer hesitancy to a more discerning clientele confronted with rising costs in the market. 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 working in Miami, reported witnessing “nightmare scenarios,” where last-minute cancellations occur over trivial details. Last month, around 2,500 home purchases were canceled in Miami, representing approximately 17.6% of homes that went under contract in June. He emphasized that the primary concern remains affordability.
The median home sale price in June reached a record high of $442,525, while the average rate for a 30-year mortgage was 6.92%. Alongside elevated home prices and still-high mortgage rates, potential buyers are further burdened by costs related to insurance, property taxes, homeowners association fees, and other expenses that have been intensified by inflation.
This lack of affordability in the national market has led to the most significant decline in home sales seen in eight months, according to Redfin. Sales decreased by 0.5% in June, the largest decline since October 2023. On a year-over-year basis, home sales dropped by 1.1% and were 21.5% below levels recorded before the pandemic.