Realtors are currently facing an unprecedented number of indecisive buyers as the real estate market remains challenging. A recent report from Redfin revealed that nearly 56,000 home purchase agreements were canceled in June, representing 15% of all homes that went under contract that month. This marks the highest percentage for any June recorded by Redfin.
Julie Zubiate, a Redfin Premier real estate agent based in the San Francisco Bay Area, attributes the increase in buyer hesitance to the high costs associated with homeownership. Buyers are increasingly backing out of purchases over minor issues because the overall expenses have become too significant to overlook.
In Miami, Redfin agent Rafael Corrales noted that he has witnessed “nightmare scenarios,” including last-minute cancellations driven by small details. Approximately 2,500 home purchases were abandoned in Miami last month, which constitutes about 17.6% of homes that went under contract. Corrales pointed out that the primary challenge for buyers is affordability.
The median home sale price reached an all-time high of $442,525 in June, alongside an average 30-year mortgage rate of 6.92%. Compounding these issues are rising costs for insurance, property taxes, homeowners association (HOA) fees, and other expenses related to homeownership, all further strained by inflation.
The persistent lack of affordability across the nation has led to the most significant decline in home sales seen in eight months, according to Redfin. On a monthly basis, home sales dipped by 0.5% in June—the most substantial decrease since October 2023. Year-over-year, home sales fell by 1.1% and are currently 21.5% below pre-pandemic levels.