Realtors are encountering an increasing number of indecisive buyers as individuals become more selective in a challenging real estate environment.
A recent report from Redfin revealed that 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 recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the surge in cancellations to buyers who are facing a costly 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, another Redfin agent based in Miami, reported “nightmare scenarios,” including last-minute cancellations over trivial details. In June, approximately 2,500 home purchases were canceled in Miami, accounting for about 17.6% of homes that went under contract. Corrales emphasized that the primary concern remains affordability.
The median home sale price reached an all-time high of $442,525 in June, while the average rate on a 30-year mortgage hit 6.92%. In addition to high property prices and ongoing elevated mortgage rates, potential buyers are faced with rising costs related to insurance, property taxes, homeowner association fees, and other homeownership expenses exacerbated by inflation.
The nationwide affordability crisis has led to the most significant decline in home sales in eight months, according to Redfin. Month-over-month, home sales fell by 0.5% in June, marking the largest drop since October 2023. Year-over-year, home sales decreased by 1.1% and were 21.5% lower than pre-pandemic figures.