Slower sales, fewer pending sales, fewer bidding wars and reduced pricings are among the recent market shifts.
Party May Be Coming to an End for Home Sellers
The COVID pandemic has been more than generous to home sellers for this last year and a half. Pend-up demand, relocations and multiple home buying have sent prices soaring. However, everything comes to an end, if only for a period of time, even massive profit making from home sales.
The latest report on the four-week period ending September 5 by Redfin looks as though the party is winding down in some parts of the country for home sellers. Half of homes sold during this period sold for over the asking price, down from the July peak of 55%. Less than half the homes sold, 47%, went under contract within two weeks, down from the March peak of 56%.
August was 2021’s slowest month for bidding wars. Rather than April’s peak of 74% of homes sold receiving multiple bids, just 59% of homes sold faced bidding war competition. That 59% is less than the 60% of homes sold in bidding wars during August 2020.
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Where Are Market Shifts Most Apparent?
Like everything in real estate, it’s all about location, location, location. Bidding wars are still blazing in some of the nation’s metro areas while in others, bidding wars are beginning to fizzle.
Take a look at this latest data on bidding wars from Redfin. Among the 350 metro areas researched, Redfin took a deeper dive into 48 large metros to determine which metro areas had the greatest and least share of bidding wars. During the four-week period ending September 5.
Metro Areas with Lowest Rate of Bidding Wars
Metro 8/21 7/21 8/20
Oklahoma City OK 36% 61% 60%
Sarasota FL 42% 62% —-
Richmond VA 43% 50% —-
Milwaukee WI 43% 39% —–
Charleston S.C. 44% 68% —-
Chicago IL 46% 53% 44%
Cleveland OH 47% 44% —-
Minneapolis MN 49% 65% 61%
Houston TX 50% 50% 47%
St. Louis MO 50% 65% —-
(Data from metros in which Redfin agents received less than 20 bids in August 2020 are not included here.)
Metro Areas with Highest Rate of Bidding Wars
Metro 8/21 7/21 8/20
Raleigh NC 87% 71% 46%
San Francisco CA 71% 68% 71%
Tucson AZ 71% 68% 71%
Cincinnati OH 70% 57% —-
Salt Lake City UT 68% 58% 71%
Columbus OH 67% 63% 45%
Jacksonville FL 67% 58% —-
Boston MA 67% 65% 65%
Charlotte NC 66% 69% 54%
San Diego CA 66% 73% 73%
Thanks to Redfin.