Home purchases getting canceled at a record rate
A recent Redfin report reveals around 56,000 home purchases fell through last June — or, nearly 15% of homes that went under contract — marking the highest percentage of any June on record.
“Buyers are getting more and more selective,” said Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area.
“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.”
Americans are thinking twice about purchasing property right now with the median home sale price climbing 4% since last year to a record $442,525 in June and the average 30-year mortgage rate at 6.92%.
Some are also considering waiting it out a little longer in the hopes that the key rate could fall in September — even though policymakers just voted to hold it steady in July — and ease some of their affordability concerns.
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Read MoreSellers are slashing prices
With fewer takers, properties are languishing longer on the market, with the number of active listings climbing nearly 13% since last year, according to Redfin.
“We're seeing a slow shift from a seller's market to a buyer's market,” said National Association of Realtors chief economist Lawrence Yun in a recent press release.
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
As a result, desperate sellers trying to offload their homes are reducing prices to reel buyers back in.
Nearly one in five homes for sale in June had a price cut — also the highest level of any June on record, reports Redfin. That’s a jump from 14.4% the year prior and just behind the 21.7% record set in October 2022.
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