The Florida housing market is facing unprecedented challenges, with homebuyers backing out of purchase agreements at a record rate, according to a new report from real estate brokerage Redfin. Despite rising prices and steady mortgage rates, the number of canceled deals continues to surge.
In June, nearly 56,000 home-purchase agreements were canceled in the Sunshine State, representing approximately 14.9 percent of all homes under contract that month. This is the highest percentage ever recorded for any June.
“We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minor reasons,” said Rafael Corrales, a Redfin Premier agent in Miami, in a press release. In this coastal city, around 2,500 home purchases were canceled in June—about 17.6 percent of all homes under contract.
Corrales explained that affordability is the underlying issue, although buyers often back out during the inspection period due to finding something they don’t like. “I don’t want my buyers to be surprised by all of the expenses that come with owning a home in Florida, so I advise them to proactively research the hefty costs of insurance, property taxes, and HOA fees, in addition to their mortgage payment.”
These expenses add up to the already significant sum needed to purchase a home in Florida. The median sale price of a home in Florida, according to the latest Redfin data included in the report, was $442,525 in June, up 0.9 percent from the previous month and up 4 percent year-over-year. This is higher than the state’s 2022 pandemic peaks of $410,000.
Prices are creeping up at the state level despite the recent growth in inventory across Florida, one of the states building the most new homes in the country, alongside Texas. The total number of homes for sale, seasonally adjusted, according to Redfin, was 1,636,110 in June—down 0.1 percent month-over-month but up 12.8 percent year-over-year.
Overall, the state had a 2.6-month supply in June, meaning it would take 2.6 months for the current inventory to be sold given the current sale pace if no new listings were added. In terms of buyers’ options, that’s not much at all.
However, the high price of homes in the state still keeps buyers waiting on the sidelines. According to Redfin data, homes in the state spent an average of 32 days on the market before going under contract, enough to be considered “stale” listings.
Orlando, Florida, was the city with the highest percentage of home-purchase agreements canceled in June out of the 50 most populous U.S. metropolitan areas analyzed by Redfin, with a total of 900—about 20.8 percent of all homes under contract that month.
