Realtors are facing an unprecedented wave of indecisive buyers as the challenging real estate market prompts increased selectivity among potential homeowners.
Data from a report released by Redfin indicates that nearly 56,000 home-purchase agreements were canceled in June, accounting for 15% of all homes that went under contract that month. This marks the highest cancellation rate for June reported by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributes this trend to buyers who are becoming more discerning in light of rising market costs. “They are withdrawing due to minor issues because the monthly expenses tied to home ownership are too high to overlook without fulfilling all their must-have criteria,” Zubiate explained.
Rafael Corrales, a Redfin agent based in Miami, noted experiencing “nightmare scenarios,” where clients cancel deals at the last minute over seemingly trivial details. Last month, approximately 2,500 home purchases were scrapped in Miami, representing about 17.6% of the homes that had gone under contract. Corrales cited affordability as the primary concern driving these cancellations.
In June, the median home sale price hit a record high of $442,525, while the average interest rate for a 30-year mortgage was reported at 6.92%. Along with the elevated home prices and persistently high mortgage rates, prospective buyers are also contending with additional costs such as insurance, property taxes, and HOA fees, which have all been impacted by inflation.
As affordability becomes an increasing issue nationwide, home sales have experienced their most significant decline in eight months, according to Redfin’s findings. Monthly home sales saw a decrease of 0.5% in June—the largest decline since October 2023. Year-over-year, sales fell by 1.1% and were 21.5% below levels observed before the pandemic.