Florida Home Sellers Facing "Nightmare Scenarios" As Deals Fall Through

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Just when you thought Florida's real estate market couldn't get worse.

Florida homebuyers are increasingly walking away from real estate deals at unprecedented rates, according to a new report from real estate brokerage Redfin. The state witnessed a staggering 56,000 home-purchase agreements fall through in June, marking a record cancellation rate of approximately 14.9 percent of all homes that went under contract that month.

Rafael Corrales, a Redfin Premier agent based in Miami, mentioned the dire situation. "We're seeing nightmare scenarios where deals are being canceled at the last minute for even the smallest reasons."

Miami saw about 2,500 canceled purchases in June, equating to roughly 17.6 percent of homes under contract in the city. Corrales attributes these cancellations to affordability issues, with buyers often pulling out during the inspection period upon discovering additional costs such as insurance, property taxes, and HOA fees, which compound the already high price of homes in Florida.

In June, the median sale price of a home in Florida climbed to $442,525, a 0.9 percent increase from May and a 4 percent rise from the previous year. This figure surpasses the state's 2022 pandemic peak of $410,000. Despite a recent uptick in home inventory, Florida’s prices continue to climb, making it one of the most expensive housing markets in the country.

The state's housing inventory showed a marginal decrease of 0.1 percent month-over-month but a notable 12.8 percent increase year-over-year, totaling 1,636,110 homes available for sale in June. With a 2.6-month supply of homes, the market remains tight, meaning current inventory would be sold in just over two months if no new listings were added.

The Orlando metropolitan area reported the highest rate of canceled home-purchase agreements among the 50 most populous U.S. cities, with 20.8 percent of deals falling through in June. Jacksonville and Tampa followed closely, both experiencing cancellation rates of 20.5 percent. Other cities with significant cancellation rates include Las Vegas (20.2 percent) and San Antonio, Texas (19.9 percent).

As the housing market in Florida grapples with rising prices and stagnant mortgage rates, prospective buyers are finding themselves increasingly cautious, leading to a surge in deal cancellations and a volatile real estate landscape.

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