Realtors are encountering an increase in tentative buyers as people become more selective in a challenging real estate market. According to a recent report from Redfin, nearly 56,000 home purchase agreements were abandoned in June, representing 15% of all homes that went under contract that month, marking the highest percentage recorded for June.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed this trend to buyers hesitating over minor issues, as the high monthly costs associated with purchasing a home make it difficult to overlook their must-have list.
In Miami, Redfin agent Rafael Corrales reported experiencing significant last-minute cancellations due to small details, with approximately 2,500 home purchases canceled in June, which accounts for about 17.6% of contracts in the area. He emphasized that affordability remains the primary concern for many buyers.
The median home sale price hit a record high of $442,525 in June, while the average rate for a 30-year mortgage was reported at 6.92%. Aspiring homebuyers are not only facing elevated home prices and mortgage rates but are also burdened by additional costs such as insurance, property taxes, and homeowners association fees, which have been driven up by inflation.
The overall lack of affordability has led to a significant decline in home sales across the nation, with Redfin noting the largest drop in eight months. Month-to-month, home sales fell by 0.5% in June, marking the steepest decline since October 2023. Year-over-year, sales dropped by 1.1%, and were 21.5% lower than pre-pandemic figures.