Realtors are facing an unprecedented number of hesitant buyers as the current real estate market becomes increasingly challenging. According to a Redfin report released Tuesday, nearly 56,000 home-purchase agreements fell through in June, accounting for 15% of all properties that went under contract that month. This marks the highest percentage for any June recorded by the real estate platform.
Julie Zubiate, a real estate agent with Redfin Premier in the San Francisco Bay Area, attributes this trend to a more selective buyer base struggling with high costs. 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.”
In Miami, Redfin agent Rafael Corrales reported “nightmare scenarios” with numerous last-minute cancellations over minor details. In June, approximately 2,500 home purchases were canceled in Miami, representing about 17.6% of homes that went under contract. Corrales emphasized that affordability remains the primary concern.
The median home sale price hit a record $442,525 in June, while the average interest rate for a 30-year mortgage rose to 6.92%. In addition to high home prices and interest rates, potential buyers are also contending with additional expenses such as insurance, property taxes, and HOA fees, all made worse by inflation.
This wide-reaching affordability issue has led to a significant decline in home sales nationwide. According to Redfin, sales fell by 0.5% in June month-over-month, marking the largest drop since October 2023. Year-over-year, home sales decreased by 1.1% and are currently 21.5% lower than pre-pandemic figures.