Florida’s major urban housing markets experienced a surge in home-purchase cancellations in June, with Orlando, Jacksonville, and Tampa reporting the highest rates nationwide.
Florida’s urban housing markets experienced disruptions in June, marked by a record number of home-purchase cancellations across the state’s major cities, according to a new report published by Redfin.
Orlando, Jacksonville and Tampa reported the highest home-purchase cancellation rates in the nation, according to the report’s dataset, with Orlando posting a 20.8 percent home-purchase agreements cancellation ate, the highest rate among the 50 largest U.S. metropolitan areas. Jacksonville and Tampa closely followed with cancellation rates of 20.5 percent each. Miami saw approximately 2,500 home-purchase agreements fall through, accounting for 17.6 percent of contracts.
Redfin contends that the spike in cancellations can be attributed to the rising costs of homeownership. The median U.S. home sale price reached a record $442,525 in June, per the report, a 4 percent increase from the previous year. Mortgage rates also remain high, with the average interest rate on a 30-year fixed mortgage at 6.92 percent, more than double the pandemic-era lows.
“We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons,” said Rafael Corrales, a Redfin Premier agent in Miami. “Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue. 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 the cost of their mortgage payment.”
Florida’s housing market also saw a significant increase in active listings. Tampa experienced a 47 percent rise in active listings year-over-year, while Fort Lauderdale and Orlando saw increases of 45.3 percent and 41.4 percent, respectively, indicating that a growing number of homes stay on the market longer as potential buyers grapple with affordability concerns.
The report also found that price reductions are becoming more common as sellers strive to attract buyers. In June, roughly 20 percent of homes for sale had a price cut, the highest share for any June on record. Tampa had one of the highest rates of price reductions, with 43 percent of listings experiencing a cut. The typical home sold in June spent 32 days on the market, the longest duration for any June since 2020.
Miami’s market dynamics are further complicated by legal and structural issues. Following the 2021 Surfside condo collapse, new laws require older condo buildings to maintain reserve funds and undergo structural inspections. Buyers must review homeowners association board meeting minutes, and some are hiring legal representation due to sellers’ reluctance to share necessary information.