Realtors are experiencing an increase in hesitant buyers as individuals become more selective in a challenging real estate landscape.
According to a recent report from Redfin, nearly 56,000 home-purchase agreements fell through in June, equating to 15% of all homes that went under contract that month. This marks the highest percentage of failed deals for June recorded by the real estate platform.
Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area, attributed the increase in withdrawals to buyers who are navigating a steep market. “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,” commented Zubiate.
Rafael Corrales, a Redfin agent in Miami, noted “nightmare scenarios” with last-minute cancellations over trivial matters. In Miami alone, approximately 2,500 home purchases were canceled in June, representing about 17.6% of homes that went under contract in that month. Corrales identified affordability as the primary concern.
In June, the median home sale price reached an all-time high of $442,525, while the average 30-year mortgage rate stood at 6.92%. Additionally, potential buyers are facing various expenses such as insurance, property taxes, and HOA fees, which have been worsened by inflation.
The nationwide challenge of affordability has contributed to the most significant decline in home sales in eight months. Month-over-month, home sales dropped by 0.5% in June, marking the largest decline since October 2023. Year-over-year, home sales fell by 1.1% and are currently 21.5% below pre-pandemic levels.