Realtors are encountering an increasing number of indecisive buyers as individuals become more selective in a challenging real estate market.
A report from Redfin revealed that nearly 56,000 home-purchase agreements failed in June, amounting to 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 real estate agent with Redfin Premier in the San Francisco Bay Area, attributed the uptick in cancellations to buyers becoming more discerning while facing a pricier market.
“They are opting out over minor issues because the monthly costs of buying a home today are simply too high to overlook any shortcomings on their must-have lists,” Zubiate stated.
Rafael Corrales, another Redfin agent based in Miami, reported experiencing “nightmare scenarios,” including last-minute cancellations triggered by small details. Approximately 2,500 home purchases were called off in Miami last month, equating to about 17.6% of homes under contract in June. Corrales noted that the primary concern remains affordability.
The median home sale price hit a record high of $442,525 in June, with the average rate for a 30-year mortgage at 6.92%. Alongside the elevated home prices and sustained high mortgage rates, prospective buyers are also facing increased costs from insurance, property taxes, HOA fees, and various other expenses tied to homeownership, all compounded by inflation.
This widespread lack of affordability has led to the largest decline in home sales in eight months, according to Redfin. Monthly home sales fell by 0.5% in June, marking the steepest drop since October 2023. Year-over-year, home sales decreased by 1.1% and were 21.5% lower than pre-pandemic levels.