Bidding wars are cooling as the overall market is normalizing.
Bidding Wars Cooling
According to the latest market report from Redfin, housing market competition among potential homebuyers and the level of bidding wars are calming down.
During August, 58.8% of all home offers written by Redfin agents faced competitive bidding wars. This 58.8% represents the lowest bidding war rate in all of 2021.
Rather than July’s bidding-war rate of 62.1% and the peak bidding war rate of 74.3% in April, potential homebuyers appear to be relieved about there being a little less competition in the housing marketplace.
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Still a Sellers’ Market BUT Price Growth Stabilizing
Sellers continue to have the upper hand in today’s housing market however, some potential buyers are becoming more selective and saying enough is enough.
For example, the bidding-war rate in Orlando FL dropped to 57.5% in August from 78.9% in July. Supply shortages are slowly becoming less acute and home shoppers have more choices.
According to Nicole Dege, a Redfin agent in Orlando, “Sellers are still pricing their homes very high, but a lot of buyers have had enough and are no longer willing to pay the huge premiums they were six months ago. Instead of thee 25 to 30 offers on turnkey homes, we’re now seeing five to seven…Buyers are getting a bit more selective.”
Bidding War Rates by Metro Area
Raleigh NC and San Francisco/San Jose have the highest bidding war rates in the country. Tucson AZ, Cincinnati and Salt Lake City are not far behind.
Take a look at the metros with the top bidding-war rates in August 2021.
Metro 8/21 Bidding Wars-7/21 Bidding Wars
Raleigh NC 86.7% 71.3%
San Francisco/San Jose 70.7% 67.8%
Tucson 70.5% 68.4%
Cincinnati 70.4% 56.5%
Salt Lake City 68.1% 57.6%
Columbus 67.3% 63.2%
Jacksonville 67.3% 58.1%
Boston 67.0% 64.5%
Charlotte 65.7% 68.5%
San Diego 65.5% 73.4%
Dallas 63.7% 66.1%
Bellingham 63.6% 58.1%
Sacramento 62.9% 73.0%
Los Angeles 62.8% 67.5%
San Antonio 62.1% 67.8%
Here’s a look at the metros with the lowest bidding-war rates in August 2021:
Oklahoma City 35.7% 60.9%
Sarasota 41.7% 62.1%
Milwaukee 42.9% 50.0%
Richmond VA 42.9% 38.5%
Charleston 43.5% 68.2%
Chicago 45.5% 52.9i%
Cleveland 47.2% 43.8%
Minneapolis 49.4% 65.2%
Houston 49.5% 55.5%
St. Louis 50.0% 64.5%
Pittsburgh 51.2% 57.4%
Tampa 51.9% 66.7%
Austin 52.5% 62.2%
Miami 53.1% 50.0%
Kansas City 53.6% 59.3%
Thanks to Redfin.
