Realtors are facing an unprecedented number of indecisive buyers as individuals become more selective in a challenging real estate market.
According to a report by Redfin, nearly 56,000 home-purchase agreements were canceled in June, representing 15% of all homes that went under contract during that month. This marks the highest percentage recorded for any June by the real estate firm.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributes the increase in cancellations to buyers who are adjusting to a pricier market. “They’re backing out due to minor issues because the monthly costs of buying a home today are simply too high to justify not getting everything on their must-have list,” Zubiate explained.
In Miami, Redfin agent Rafael Corrales observed that he has encountered “nightmare scenarios,” including last-minute withdrawals over trivial matters. June saw around 2,500 home purchases canceled in Miami, accounting for approximately 17.6% of homes that entered contracts that month. Corrales pointed to affordability as the primary challenge.
The median home sale price climbed to a record $442,525 in June, accompanied by an average interest rate of 6.92% for a 30-year mortgage. Prospective buyers are further burdened by additional costs related to insurance, property taxes, and HOA fees, all of which have been intensified by inflation.
This lack of affordability nationwide has led to the most significant decline in home sales in eight months, as reported by Redfin. Home sales decreased by 0.5% in June compared to the previous month, marking the largest drop since October 2023. Year-over-year comparisons show a dip of 1.1%, with sales 21.5% lower than pre-pandemic levels.