Realtors are increasingly encountering tentative buyers as the real estate market becomes more challenging. A report from Redfin revealed that in June, nearly 56,000 home-purchase agreements were canceled—15% of all homes that went under contract that month—marking the highest percentage for any June on record.
Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, attributed the surge in buyer hesitance to consumers being more selective in an expensive market. She noted that buyers are withdrawing from deals over minor issues because the costs associated with purchasing a home today are too significant to overlook without meeting all their requirements.
Similarly, Rafael Corrales, a Redfin agent in Miami, reported “nightmare scenarios” where last-minute cancellations occur over trivial details. In June alone, around 2,500 home purchases were canceled in Miami, representing about 17.6% of contracts. Corrales highlighted affordability as the primary concern for buyers.
The median sale price for homes hit a record high of $442,525 in June, with average 30-year mortgage rates reaching 6.92%. Alongside elevated home prices and mortgage rates, prospective buyers face additional burdens from insurance, property taxes, HOA fees, and other homeowner costs that have been worsened by inflation.
As a result of these affordability challenges nationwide, home sales experienced their most significant decline in eight months, as reported by Redfin. Home sales dropped by 0.5% month-over-month in June, the largest decrease since October 2023. Year-over-year, sales fell by 1.1% and remained 21.5% below pre-pandemic levels.