June saw a significant wave of home-purchase agreement cancellations, according to the latest data from Redfin, a national real estate brokerage.
- Nearly 56,000 deals fell through in June, representing 14.9% of homes that went under contract that month.
- This was the highest percentage of cancellations for any June on record, indicating growing buyer hesitation in the face of rising costs and economic uncertainty.
Florida #1: Florida’s housing market is particularly affected, with the highest rates of contract cancellations occurring in the Sunshine State. Orlando led the pack, with about 900 home-purchase agreements canceled in June, equating to 20.8% of homes that went under contract.
- Jacksonville and Tampa followed closely with 20.5% of contracts being canceled in June.
Sellers Market: Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), who noted, “We’re seeing a slow shift from a seller’s market to a buyer’s market.” Further evidence of this market shift is reflected in the increasing number of homes experiencing price cuts. Approximately one in five (19.8%) homes for sale in June had a price reduction, the highest level for any June on record. This is up from 14.4% a year earlier and just shy of the 21.7% record high set in October 2022.
Why This Is Happening: House hunters are increasingly finding it difficult to commit, as purchasing a home has become more expensive than ever. The median home sale price climbed 4% year-over-year to a record $442,525 in June. Additionally, the average interest rate on a 30-year mortgage stood at 6.92%, slightly down from 7.06% in May but still more than double the all-time low experienced during the pandemic. These factors are creating a challenging environment for prospective buyers.