Thursday, August 19, 2021 / by Ken Couture
Competition in the housing market is showing signs of slowing down. More and more markets are reporting lower prices and fewer bidding wars. This could open the door for some affordable homebuyers this fall.
60% of listings conducted by real estate professionals nationwide faced competition in July, the lowest level since January, according to an index that measures competitive offers among professionals. Redfin real estate. The rate of auction wars is also down significantly from the pandemic peak of 74% in April. An offer is considered part of a bidding war if at least one competitive bid is made.
“Competition has started to slow in the last three weeks,” said Scott Mercer, a real estate professional with Redfin in Sacramento, Calif. “We’re now seeing five to eight offers on homes instead of 25, and they’re coming in $5,000 to $10,000 above the listing price instead of $50,000 to $60,000. Buyers are pushing back. They’ve even started including appraisal contingencies again and making requests for repairs—things that were pretty much unheard of last year.”
With more listings appearing, buyers have more homes to choose from, which has helped to reduce competition. Also, competition in the housing market typically eases in the summer following the spring homebuying season. However, nothing about the housing market during the pandemic has necessarily followed historical seasonal patterns.
Home prices remain high, which could also devalue some potential buyers. The National Association of Realtors® reported that the current median home price for all housing types in June was $ 363,300, up 23.4% from the previous year.
The markets with the largest share of bidding wars in July, according to Redfin’s index, were:
- Fort Collins, Colo.: 77.3%
- Orlando, Fla.: 77%
- Nashville, Tenn.: 74.6%
- Honolulu: 74.1%
- Colorado Springs, Colo.: 73.2%
- Sacramento, Calif.: 72.9%
- Charleston, S.C.: 71.4%
- Charlotte, N.C.: 70.8%
- San Diego: 69.8%
- Las Vegas: 68.6%
- Tucson, Ariz.: 68.4%
- Tampa, Fla.: 66.7%
- Denver: 66.5%
- San Francisco/San Jose: 66.3%
- San Antonio: 66.3%
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