Realtors are experiencing an increase in indecisive buyers as the real estate market becomes more challenging.
A recent report by Redfin indicates that nearly 56,000 home-purchase agreements were canceled in June, which accounts for 15% of all contracts that month. This marks the highest percentage of canceled deals for any June recorded by the real estate company.
Julie Zubiate, a Redfin Premier agent based in the San Francisco Bay Area, attributes this trend to buyers becoming more selective in a costly market. She noted that many buyers are backing out over minor issues because the financial commitment of purchasing a home is significant.
Rafael Corrales, a Redfin agent in Miami, described witnessing “nightmare scenarios” with buyers canceling at the last minute over trivial details. In Miami alone, about 2,500 home purchases were canceled in June, representing roughly 17.6% of homes that went under contract. Corrales pointed out that affordability remains the core issue.
The median sale price of homes hit a record high of $442,525 in June, alongside a 30-year mortgage average rate of 6.92%. In addition to high home prices and mortgage rates, prospective buyers are also facing increased costs from insurance, property taxes, homeowners association fees, and other expenses linked to homeownership that have been intensified by inflation.
This widespread lack of affordability has led to the most significant decline in home sales in eight months, as noted by Redfin. Home sales dropped by 0.5% in June compared to the previous month, marking the steepest decline since October 2023. Year-over-year, home sales declined by 1.1% and were 21.5% lower than pre-pandemic levels.