Realtors are facing an increasing number of indecisive buyers as the current real estate market becomes more challenging and buyers grow more selective.
A report from Redfin indicates that nearly 56,000 home purchase agreements were abandoned in June, representing 15% of all homes that were under contract that month. This figure 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 the rise in canceled transactions to buyers who are becoming more particular while dealing with the heightened costs in the housing market. She noted, “They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list.”
In Miami, Redfin agent Rafael Corrales reported witnessing “nightmare scenarios,” where buyers cancel last-minute over trivial details. In June alone, about 2,500 home purchases in Miami were canceled, equating to roughly 17.6% of pending sales. He highlighted that the primary concern for buyers remains affordability.
The median home sale price reached an all-time high of $442,525 in June, with the average interest rate on a 30-year mortgage at 6.92%. In addition to the elevated price of homes, prospective buyers are further burdened by insurance costs, property taxes, and homeowners’ association fees—all of which have been driven up by inflation.
The issue of affordability has contributed to a significant downturn in home sales across the nation, with Redfin reporting the largest decline in eight months. Month-over-month, home sales decreased by 0.5% in June, the steepest drop since October 2022. On a year-over-year basis, sales decreased by 1.1%, reflecting a 21.5% drop compared to pre-pandemic levels.