Realtors are facing an increasing number of indecisive buyers as people become more selective in a challenging real estate market. A recent report from Redfin revealed that nearly 56,000 home-purchase agreements fell through in June, accounting for 15% of all homes that went under contract that month. This marks the highest percentage recorded for any June by the real estate website.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributes the surge in last-minute cancellations to buyers who are struggling with the elevated costs of the housing market. She noted that many buyers are withdrawing from deals over minor issues as the financial implications of purchasing a home are considerable.
In Miami, Rafael Corrales, another Redfin agent, described some “nightmare scenarios” related to home purchases, including buyers cancelling at the last moment over trivial concerns. In June, about 2,500 transactions were canceled in Miami, representing 17.6% of homes that went under contract. Corrales emphasized that the main challenge is affordability.
The median sale price of homes hit a record high of $442,525 in June, complemented by an average 30-year mortgage rate of 6.92%. In addition to the high prices and ongoing elevated mortgage rates, potential buyers are also burdened by expenses like insurance, property taxes, and homeowners association fees, all of which have been amplified by inflation.
The lack of affordability has led to a significant decline in home sales across the nation. According to Redfin, home sales experienced the largest decrease in eight months, dropping 0.5% month-over-month in June—the steepest decline since October 2022. Year-over-year, home sales fell by 1.1% and were 21.5% lower than levels seen before the pandemic.