Realtors are facing an unprecedented number of indecisive buyers as individuals become more selective in a challenging real estate market.
According to a recent report by Redfin, nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that were under contract that month. This marks the highest percentage of cancellations ever recorded in June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the increase in buyer hesitance to a more discerning clientele grappling with rising costs. She stated, “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 based in Miami, described witnessing extreme situations where buyers cancel deals over insignificant details, with approximately 2,500 home purchases aborted in Miami last month—about 17.6% of homes that went under contract in June. Corrales emphasized that the primary concern is affordability.
In June, the median home sale price hit a record high of $442,525, while the average rate for a 30-year mortgage rose to 6.92%. Additionally, potential homebuyers are burdened by rising insurance costs, property taxes, HOA fees, and other expenses associated with homeownership, all exacerbated by inflation.
The widespread lack of affordability is contributing to a significant decline in home sales nationwide, as reported by Redfin. Month-over-month, home sales decreased by 0.5% in June—the steepest drop since October 2023. Year-over-year, home sales fell by 1.1%, reaching levels that are 21.5% below pre-pandemic figures.