Record Rate of Home Purchase Cancellations in Florida Amid Rising Prices and Stagnant Mortgage Rates
Florida Homebuyers Pulling Out of Deals at Record Rates Amid Rising Prices and Stubborn Mortgage Rates
Florida’s real estate market is facing a significant shake-up as homebuyers are backing out of purchase agreements at an unprecedented rate. A recent report from real estate brokerage Redfin reveals that in June alone, nearly 56,000 home-purchase agreements were canceled across the Sunshine State, representing approximately 14.9 percent of all homes that went under contract that month—the highest percentage recorded for June.
Rafael Corrales, a Redfin Premier agent based in Miami, highlighted the alarming trend, stating, "We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons." In Miami, the situation is particularly acute, with around 2,500 home purchases canceled in June, translating to about 17.6 percent of all homes under contract.
The cancellations are largely attributed to buyers’ concerns over affordability, which has become a pressing issue in the state. "Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue," Corrales explained. He emphasized the importance of understanding the full financial picture, advising potential buyers to research the substantial costs associated with homeownership in Florida, including insurance, property taxes, and homeowners association (HOA) fees.
The median sale price of a home in Florida reached $442,525 in June, marking a 0.9 percent increase from the previous month and a 4 percent rise year-over-year. This figure surpasses the state’s pandemic peak of $410,000 in 2022, making homeownership increasingly elusive for many.
Despite a recent uptick in housing inventory—Florida is among the states leading in new home construction—the rising prices continue to deter buyers. According to Redfin, the total number of homes for sale in June was approximately 1,636,110, a slight decrease of 0.1 percent month-over-month but a notable increase of 12.8 percent year-over-year. With a 2.6-month supply of homes available, options for buyers remain limited.
The situation is particularly dire in Florida’s major cities. Orlando recorded the highest percentage of canceled home-purchase agreements in June, with 900 cancellations, or about 20.8 percent of all homes under contract. Jacksonville and Tampa followed closely behind, each with a cancellation rate of 20.5 percent. Other cities, including Las Vegas and San Antonio, also reported significant rates of canceled agreements, but Florida’s metropolitan areas dominated the list.
As buyers continue to grapple with high prices and stagnant mortgage rates, many are left waiting on the sidelines, uncertain about when—or if—they will make their next move in the housing market. With homes spending an average of 32 days on the market before going under contract, the landscape is shifting, and potential buyers are increasingly cautious in their approach to homeownership in Florida.