Realtors are encountering an increasing number of buyers reconsidering their home purchases, reflecting a trend of selectivity in a challenging real estate environment. According to a report by Redfin released on Tuesday, nearly 56,000 home-purchase agreements were canceled in June, which constitutes 15% of all contracts signed that month. This marks the highest cancellation rate recorded for June by the real estate platform.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this rise in buyer hesitance to the high costs associated with purchasing a home, leading prospective buyers to withdraw over minor concerns. “They’re backing out due to minor issues because the monthly costs of buying a home today are just too high to rationalize not getting everything on their must-have list,” she explained.
Rafael Corrales, another Redfin agent based in Miami, pointed out that he has witnessed alarming situations, including last-minute cancellations triggered by small details. Approximately 2,500 home purchases were called off in Miami last month, amounting to about 17.6% of homes under contract in June. Corrales emphasized that affordability remains the primary concern.
In June, the median home sale price reached a record $442,525, with the average rate for a 30-year mortgage at 6.92%. Prospective buyers are also facing rising costs related to insurance, property taxes, and homeowners association fees, alongside the burden of inflation.
The overall lack of affordability has led to the most significant decline in home sales in eight months, according to Redfin. On a monthly basis, home sales experienced a drop of 0.5% in June, the largest decrease since October 2023. Comparatively, home sales fell 1.1% year-over-year, standing 21.5% below pre-pandemic levels.