Realtors are facing an increasing number of indecisive buyers as individuals become more selective amid challenging conditions in the real estate market.
A recent report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that were under contract that month. This marks the highest cancellation rate recorded in any June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributed the rise in cancellations to buyers being more discerning in an expensive market. She noted that “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, a Redfin agent in Miami, described some challenging situations where buyers canceled deals at the last minute over trivial concerns. In Miami alone, around 2,500 home purchases were canceled in June, equating to approximately 17.6% of homes that went under contract. Corrales emphasized that the primary concern is affordability.
In June, the median home sale price hit a record high of $442,525, while the average rate for a 30-year mortgage was at 6.92%. Prospective buyers are also facing additional financial burdens such as insurance, property taxes, HOA fees, and other costs of homeownership that have been intensified by inflation.
This widespread lack of affordability in the market has led to a significant decline in home sales nationwide, marking the largest drop in eight months. According to Redfin, home sales decreased by 0.5% in June compared to the previous month, while year-over-year sales fell by 1.1%, remaining 21.5% below pre-pandemic levels.