Realtors are facing an increasing number of indecisive buyers in a challenging real estate market.
A recent report from Redfin indicates that nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that went under contract that month. This marks the highest cancellation rate ever recorded by the real estate platform for June.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes the rise in cancellations to buyers becoming more selective due to the heightened costs of purchasing a home. She noted that buyers are withdrawing from deals over minor issues because the overall expenses of homeownership have become difficult to justify.
In Miami, Redfin agent Rafael Corrales reported “nightmare scenarios” of last-minute cancellations triggered by trivial details. In June, around 2,500 home sales were scrapped in Miami, amounting to roughly 17.6% of homes that went under contract. Corrales emphasized that the main concern is affordability in the housing market.
The median home sale price hit a record $442,525 in June, while the average rate for a 30-year mortgage stood at 6.92%. In addition to high home prices and mortgage rates, buyers are contending with rising costs tied to insurance, property taxes, HOA fees, and other expenses related to homeownership, which have been worsened by inflation.
Nationally, the lack of affordability is leading to a significant decline in home sales, which have dropped by 0.5% month-over-month in June, marking the steepest decrease since October 2023. Year-over-year, home sales declined by 1.1% and are 21.5% lower than levels seen before the pandemic.