Realtors are experiencing a surge in indecisive buyers as the real estate market becomes increasingly challenging.
According to a report from Redfin, nearly 56,000 home purchase agreements were abandoned in June, representing 15% of all homes that went under contract during that month. This marks the highest percentage of failed agreements recorded for a June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this trend to buyers being more selective and struggling with higher prices in the market. She noted that many are withdrawing from deals over minor issues because the financial implications of purchasing a home today are daunting and lead them to seek perfection in their chosen properties.
Rafael Corrales, another Redfin agent based in Miami, described several troubling situations involving last-minute cancellations due to trivial details. In Miami, approximately 2,500 home purchases were canceled last month, accounting for around 17.6% of homes under contract in June. He emphasized 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%. Buyers are further burdened by rising insurance costs, property taxes, homeowners’ association fees, and other expenses related to homeownership that inflation has intensified.
This widespread lack of affordability has led to a significant drop in home sales, the largest in eight months, as reported by Redfin. Home sales decreased by 0.5% from May to June—the steepest decline since October 2023. Year-over-year comparisons show a dip of 1.1% in sales, leaving them 21.5% below pre-pandemic levels.