Realtors are encountering a significant increase in indecisive buyers as consumers become more selective in a challenging real estate market.
A report from Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, representing 15% of all homes that were under contract that month. This marks the highest percentage of failed agreements recorded in June by the real estate site.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes the rise in cancellations to buyers who are facing an expensive housing market. “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,” she explained.
Rafael Corrales, another Redfin agent in Miami, described “nightmare scenarios” that include last-minute cancellations over minor details. In June, approximately 2,500 home purchases were canceled in Miami, accounting for about 17.6% of homes that went under contract during that month. Corrales indicated that affordability remains the primary concern.
The median home sale price reached a record high of $442,525 in June, with the average 30-year mortgage rate at 6.92%. Prospective homebuyers are also facing additional financial burdens from insurance, property taxes, homeowner association fees, and other costs linked to homeownership, which have been worsened by inflation.
The nationwide affordability crisis has led to a notable decline in home sales, which recorded its most significant drop in eight months, per Redfin. Monthly home sales decreased by 0.5% in June—the largest drop since October 2023. On a yearly comparison, home sales fell by 1.1% and were down 21.5% compared to pre-pandemic figures.