In June, 65% of home offers written by Redfin agents faced competition, down from a revised rate of 72.1% in May and a pandemic peak of 74.1% in April, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
Still, that’s higher than the 56.8% bidding-war rate Redfin saw in June 2020, when the housing market was starting to rebound from a temporary standstill triggered by pandemic shutdowns.
The housing market has been losing steam in recent weeks following months of relentless competition and surging prices that were driven by an intensifying housing shortage and a pandemic moving spree made possible by remote work.
Buyer fatigue is likely one factor pushing down the competition rate, with some house hunters moving to the sidelines after losing bidding war after bidding war or getting priced out. An improving supply situation may also be making a difference, with new listings up 4% year over year. That means there are more properties hitting the market for buyers to bid on.
“The first half of this year was red hot—it was almost impossible to get an offer accepted. But recently, we’ve started to see buyers get cold feet,” said Laura Sechrist Molenda, a Redfin real estate agent in Southern California. “Two of my buyers just had their offers accepted because the sellers’ first buyers backed out. The market is still competitive, but buyers are more trepidatious than they were at the start of 2021, and less willing to pull out every stop in order to win.”
Redfin agents report that more buyers are starting to keep contingencies—a sign that competition is beginning to abate.
Sarasota and Charleston Have the Highest Bidding-War Rates
Sarasota, FL had the highest bidding-war rate of the 52 U.S. metropolitan areas in this analysis, with 87% of offers written by Redfin agents facing competition in June. Next came Charleston, SC, at 82.9%, and Reno, NV, at 80%. Charlotte, NC and Kansas City, MO rounded out the top five, with bidding-war rates of 78.9% and 78.6%, respectively.
“It’s still really competitive when there’s a lower-priced home in a very-sought after area,” said Redfin agent Kristi Miller of Seattle, which also had a high bidding-war rate, at 71.2%. “But bidding wars are starting to slow for mid- and higher-priced homes.”
Metros must have had at least 20 offers recorded by Redfin agents in both June 2021 and May 2021to be included in this analysis.
To view the full report, including the bidding war rates by metro, please visit: https://www.redfin.com/news/real-estate-bidding-wars-june-2021/