Realtors are facing a growing number of buyers who are hesitant to commit as the real estate market becomes increasingly challenging.
A report from Redfin revealed that nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all homes under contract that month. This marks the highest cancellation rate for June recorded by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed this trend to buyers becoming more selective in a costly market. She noted that many are opting out of agreements over relatively minor issues, as the financial implications of buying a home are significant.
In Miami, Redfin agent Rafael Corrales reported experiencing “nightmare scenarios,” with numerous last-minute cancellations triggered by minor details. In June alone, approximately 2,500 home purchases were called off in Miami, nearly 17.6% of homes under contract. Corrales emphasized that the primary concern remains affordability.
The median home sale price reached an unprecedented $442,525 in June, coupled with an average 30-year mortgage rate of 6.92%. With home prices, mortgage rates, insurance, property taxes, and HOA fees being heightened by inflation, prospective buyers are feeling the financial strain more than ever.
The overall lack of market affordability has led to a notable downturn in home sales, marking the most significant decline in eight months. Monthly home sales saw a 0.5% drop in June, the largest since October 2023. Year-over-year sales also fell by 1.1%, standing 21.5% below pre-pandemic figures.