Realtors are encountering a growing number of indecisive buyers, as individuals become more selective in a challenging real estate market.
According to a report from Redfin, nearly 56,000 home-purchase agreements were canceled in June, making up 15% of all homes that were under contract that month. This marks the highest percentage for any June recorded by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers who are navigating a more expensive 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,” Zubiate explained.
In Miami, Rafael Corrales, another Redfin agent, reported seeing numerous last-minute cancellations over minor details. Approximately 2,500 home deals fell through in Miami last month, representing about 17.6% of homes that went under contract in June. He noted that the primary concern is affordability.
The median home sale price hit a record high of $442,525 in June, with the average rate on a 30-year mortgage at 6.92%. Along with high home prices and elevated mortgage rates, prospective buyers are also facing difficulties with insurance, property taxes, homeowners association fees, and other ownership costs that have intensified due to inflation.
The nationwide shortage of affordable housing options has contributed to the most significant drop in home sales in eight months, according to Redfin. Home sales saw a 0.5% decrease in June, marking the largest decline since October 2023. Year-over-year, home sales decreased by 1.1% and remain 21.5% below pre-pandemic levels.