Nearly 56,000 home-purchase agreements were canceled in June, equal to 14.9% of homes that went under contract that month — the highest percentage of any June on record, according to data collected by Redfin.
Home prices increased 6.9% annually in the second quarter of 2024, and while that’s a drop from 7.3% in the first quarter, in combination with mortgage rates hovering at or below 7%, buying a home is highly unaffordable for the typical homebuyer. According to Redfin’s data, the median home sale price was $442,525 in June.
Deals are falling through as buyers grow selective and the reality of high housing costs hits home.
“They’re backing out due to minor issues,” said Julie Zubiate, a Redfin Premier real estate agent in the San Francisco Bay Area, "because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list.”
Seasonally adjusted, the total number of homes for sale was 12.8% higher in June 2024 than June 2023, per Redfin’s figures, but the total number of homes sold fell 1.1% — a 0.5% month-over-month decrease and 21.5% below June 2019 levels.
“Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue,” said Rafael Corrales, a Redfin Premier agent in Miami, where roughly 2,500 home purchases were canceled in June — equal to 17.6% of homes that went under contract.
Three Florida metros led the nation in home-purchase cancellations in June. Roughly 900 home-purchase agreements were canceled in Orlando, equal to 20.8% of homes that went under contract that month, followed by Jacksonville (20.5%) and Tampa (20.5%).
Las Vegas and San Antonio also experienced an elevated rate of canceled contracts in June, at 20.2% and 19.9%, respectively.
