Realtors are encountering a surge 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 reneged in June, accounting for 15% of all homes that went under contract that month. This marks the highest percentage for any June recorded by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, cited the increase in buyer hesitance to the high costs associated with home buying. She noted that buyers are opting out for minor reasons, as the financial burden of purchasing a home is substantial, making it difficult to forego any of their must-have features.
Rafael Corrales, another Redfin agent based in Miami, shared that he has witnessed troubling scenarios, including last-minute withdrawals over trivial details. In Miami alone, around 2,500 home purchases were canceled last month, equating to approximately 17.6% of homes that entered contracts in June. However, he emphasized that the primary concern is the issue of affordability.
In June, the median home sale price reached a record high of $442,525, while the average interest rate for a 30-year mortgage stood at 6.92%. Beyond elevated home prices and high mortgage rates, potential homebuyers are also grappling with additional expenses such as insurance, property taxes, and homeowner association fees, all of which have been intensified by inflation.
The nationwide decline in affordability has contributed to the most significant drop in home sales in eight months, according to Redfin. From the previous month, home sales fell by 0.5% in June, marking the steepest decrease since October 2023. Year-over-year, home sales declined by 1.1% and were down 21.5% compared to pre-pandemic levels.