New data has indicated that many Florida homebuyers are canceling their deals to purchase homes at a new record rate, which has complicated the housing market in the state.

According to this report, almost 56,000 agreements were canceled in just June alone in Florida. This was about 14.9% of all the homes that were under contract in June. It’s also the highest percentage ever recorded for the month.

Redfin data has revealed that about 2,500 home purchases were canceled in Miami in June, which was about 17.6% of all the homes that were under contract in the city at the time.

“We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons,” Corrales said.

Corrales explained, “Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue.”

Then it was Jacksonville (20.5%), Tampa (20.5%), Las Vegas (20.2%) and San Antonio (19.9%).

Corrales added, “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.”

As people who have lived in Florida their whole lives or who moved here hoping to find somewhere cheaper to live are being priced out of their own homes, this is forcing many residents to sleep elsewhere, either out of state or in their cars.

Regardless of whether anyone decided to pay attention to them, the investors turned out to be correct.

However, the 30-year fixed mortgage rate remains steady at 6.7%, which might give potential buyers peace of mind.

The number of people choosing to move to Florida, which meant its population hit more than 23 million for the first time in history, also made the housing market more competitive.

For a family of four living in Orlando, it costs an average of $4,180 a month without rent, whereas it costs $1,170 a month for a single person without rent.

On average, you would need to earn around $77,000 annually to be able to live in Florida. Any lower, and you will struggle in one way or another. However, this all depends on your area and how many people have to live off your income.

The average home value there is $2.3 million, and the average mortgage payment is $13,836. This means that the average annual income needed to live in Miami Beach is over $377,000.

Housing prices have soared in the Sunshine State in the past few years. Adding other expenses, such as taxes, onto a property has further pushed out many potential homebuyers.

However, it’s also up 4% year over year. This median sale price is even higher than the peak seen in 2022 during the pandemic, which only rose to $410,000.

Simply, there aren’t enough homes to go around. There isn’t enough inventory for buyers. Though Florida is in a better position with its housing market than other states, it’s still struggling.

This brought new laws into the state, including that older condo buildings must maintain reserve funds and undergo structural inspections. Buyers also have to read through the HOA board meeting minutes, and some are hiring lawyers because sellers refuse to share the necessary information.

This is possible through various programs, such as loan and assistance programs given by housing finance agencies and mortgage lenders, to make homeownership more affordable.

This is mainly in the Sun Belt due to supply outpacing demand, which is also happening in Texas.

It is predicted that some house prices along this strip could fall by as much as 15%, which would then cause a whole different kind of nightmare.

However, with more people now living in the state, more homes are also needed. Since there aren’t enough homes in some areas, this low demand has caused home prices to skyrocket.

However, this hasn’t seemed to help the housing market in the state yet. Experts have claimed that buyers still feel they don’t have enough options — and that homes are too expensive.

This has resulted in a record rate of people canceling contracts to buy a home, as well as forcing homes to stay on the market for a long time, making them “stale” listings.