For the fifth consecutive month, the number of bidding wars dropped September, according to a new report from Redfin.
Bidding Wars in September Hit a 2021 Low
As the housing market moved towards a seasonal slowdown and mortgage rates began to tick up, homebuyer bidding wars fell to its lowest level in nine months during the month of September. From a revised rate of 60.8% in August and a market peak high of 74.3% in April, Redfin agents reported that 58.9% of the offers they wrote in September faced bidding wars. This 58.9% is the lowest rate for bidding wars in 2021.
Despite the fact that September’s homebuyers faced less competition in the marketplace, houses continued to sell faster than historical norms for this time of the year.
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Housing Demand Fueled by Shortage of For-Sale Listings
Continued housing demand in September’s marketplace is being fueled by continued listing shortages. New listings dropped-9% in September and the pace of sale remained heightened. The typical home that sold in September did so in just 18 days, more than one week faster than in September 2020.
Taylor Marr, Redfin’s chief economist, said, “It’s typical to see a decline in competition as families head back to school and the weather cools down. Buyers also aren’t having to offer as much above the asking prices as they were in the spring when competition in the housing market was peaking. As mortgage rates continue to rise, we can expect bidding wars to keep slowing.”
Metros with Highest Bidding-War Rates
Despite the cooling market, houses continued to sell quickly in September. Heather Kruayai, a Redfin agent in Jacksonville FL, said, “Even though there aren’t as many bidding-wars, listings are still selling quickly, so it’s busier than previous years. (Jackson’s bidding war rate in September dropped to 50% from August’s rate of 71.4%.) During the spring and summer, I would get listings that would receive 30 offers within 24 hours…and people (were) offering as much as $70,000 over the asking price. That’s not as common now.”
Check out the 10 among 45 metros analyzed with the highest bidding-war rates in September: (All metros listed must have had at least 20 offers recorded by Redfin agents in both September and August.”
- Raleigh NC –
- 73.9% bidding wars in September 2021
- 79.2% bidding wars in August 2021
- 42,2% bidding wars in September 2020
- Boston MA
- 71.7% bidding wars in September 2021
- 67.2% bidding wars in August 2021
- 57.2% bidding wars in September 2020
- Indianapolis IN
- 71.4% bidding wars in September 2021
- 58.5% bidding wars in August 2021
- NA
- Sacramento CA
- 70.5% bidding wars in September 2021
- 64.8% bidding wars in August 2021
- 61.2% bidding wars in September 2020
- San Diego CA
- 70.3% bidding wars in September 2021
- 68.7% bidding wars in August 2021
- 72.0% bidding wars in September 2020
- Tucson AZ
- 70.0% bidding wars in September 2021
- 70.5% bidding wars in August 2021
- 72.0% bidding wars in September 2020
- Cincinnati OH
- 69.6% bidding wars in September 2021
- 70.4% bidding wars in August 2021
- 33.3% bidding wars in September 2020
- San Francisco/San Jose CA
- 69.4% bidding wars in September 2021
- 71.3% bidding wars in August 2021
- 68.6% bidding wars in September 2021
- Philadelphia PA
- 66.3% bidding wars in September 2021
- 60.1% bidding wars in August 2021
- 58.0% bidding wars in September 2020
- Colorado Springs CO
- 64.3% bidding wars in September 2021
- 62.5% bidding wars in August 2020
- 75.0% bidding wars in September 2020
Thanks to Redfin.
