- More sellers are cutting asking prices on listed homes
- Properties have been lingering on the market for longer
US home deals were canceled at the highest rate on record for a June as affordability pressures sidelined potential buyers.
Nearly 56,000 home purchases were canceled last month, equal to about 15% of all homes that went under contract that month, Redfin Corp. reported Tuesday. That’s the highest share of cancellations for June in the brokerage’s data going back through 2017.
Buyers are become more skittish in the face of record-high home prices and interest rates hovering just under 7%. Facing steep costs, house hunters are increasingly parting with homes under contract, sometimes because of small problems.
“Buyers are getting more and more selective,” said Julie Zubiate, a Redfin 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.”
Shoppers have been confronting a tough market since 2022 when rates started rising, squeezing affordability even more. The pressures have weighed on sales, with transactions for previously owned properties falling for a fourth straight month in June.
Sellers are now trying to adjust to mercurial buyers. Owners cut prices on nearly 20% of listed homes in June — a record for the month and up from about 14% a year earlier. The affordability crunch is starting to cause listings to pile up on the market for longer, Redfin said.
Written by: Reid Joseph Champlin @Bloomberg
The post “US Home Deals Fell Apart at a Record Rate for June, Redfin Says” first appeared on Bloomberg
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