Realtors are encountering an unprecedented number of hesitant buyers as the real estate market becomes more challenging. A recent report from Redfin reveals that nearly 56,000 home purchase agreements were canceled in June, representing 15% of all homes that were under contract, marking the highest cancellation rate for June recorded by the site.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributes this surge in cancellations to increasingly selective buyers grappling with high prices in the market. She noted, “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, shared troubling accounts of last-minute cancellations over minor details, with around 2,500 home purchases in Miami alone being canceled last month—approximately 17.6% of homes that went under contract. He emphasized that the primary concern for buyers remains affordability.
In June, the median home sale price hit a record high of $442,525, while the average rate for a 30-year mortgage stood at 6.92%. Alongside the elevated home prices and high mortgage rates, potential buyers are also burdened by additional costs such as insurance, property taxes, and HOA fees, all of which have been pushed higher by inflation.
Nationwide, the lack of affordability has led to the most significant drop in home sales in eight months, as reported by Redfin. Home sales experienced a 0.5% decline in June compared to the previous month—the most considerable decrease since October 2023. Year over year, home sales decreased by 1.1% and were 21.5% below levels seen before the pandemic.