Realtors are encountering an increase in indecisive buyers as prospective homeowners become more choosy in a challenging real estate environment.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements collapsed in June, representing 15% of all homes that went under contract during the month. This marks the highest percentage recorded for any June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, noted that buyers are withdrawing offers over minor issues due to the high associated monthly costs of homeownership, which makes them more reluctant to compromise on their requirements.
Rafael Corrales, a Miami-based Redfin agent, shared that he has observed numerous cancellations, even last-minute, due to minor details. Approximately 2,500 home purchases were canceled in Miami last month, accounting for about 17.6% of homes that went under contract in June. He emphasized that the primary concern remains affordability.
The median home sale price reached a record high of $442,525 in June, with the average 30-year mortgage rate at 6.92%. In addition to the steep home prices and elevated mortgage rates, potential buyers are also faced with rising costs linked to insurance, property taxes, homeowners association fees, and other homeownership expenditures that have been impacted by inflation.
The surge in unaffordability across the nation has contributed to a notable decrease in home sales, which have experienced their largest decline in eight months, as reported by Redfin. Sales declined by 0.5% in June compared to the previous month, marking the most significant drop since October 2023. Year-over-year, home sales fell by 1.1% and were 21.5% lower than pre-pandemic levels.