70% of home offers faced bidding wars in January.
Thought Bidding Wars Were Fading? Think Again!
If you and/or your buying clients were expecting to face a more relaxed, less competitive housing market as pandemic impacts appear to be fading, we here at Harris Real Estate Coaching suggest you think again.
January 2022 began the new year with the highest level of bidding wars ever…nationally, an eye-opening 70% of all home offers faced bidding wars as the year began. Comparatively, 67.1% of home offers in December 2021 faced bidding wars and 60% faced bidding wars in April 2020 as the pandemic kicked in.
Reminder it’s the New Year. You promised yourself you would become a HARRIS Coaching client. You are done wasting time and want to follow a proven path in 2022. Now, while you are here make the next natural step and join the 1000s of other agents as a HARRIS Real Estate University coaching member. No more waiting or procrastinating. Join now. Here is the quick and simple enrollment.—-> YES, Enroll Me Now In Premier Coaching. I WiLL make 2022 my best year ever!
Rising Mortgage Interest Rates, Not Pandemic Impacts, Spurring Bidding Wars This Time
“Rising mortgage rates are intensifying an already-severe shortage of homes for sale because buyers are feeling more urgency to buy…the few homes on the market in an effort to lock in relatively low payments before rates move even higher…” said Redfin’s Chief Economist Daryl Fairweather.
Take a look at interest rates year-over-year:
- January 2021 – record low of 2.65%
- December 2021 – 3.11%
- January 2022 – over 4%
According to Redfin, “Buyers are feeling pressure to close on deals before rates rise even further…” Rates are expected to rise throughout 2022.
Metros with Highest Levels of Bidding Wars in January 2022
The highest rate of bidding wars was seen in Spokane WA in January 2022 withRedfin agents guiding 83.3% of home offers through the bidding war process. (Spokane, by the way, was just featured in an article by The New York Times as being the most recent affordable “it” city that is no longer affordable to local buyers. Spokane’s home price growth exploded to +40% over the past two years.)
The next highest rate of bidding wars this January came to Sacramento CA where 80.4% of home offers went to competitive bidding. Seattle came in third at 79.7%.
Dallas and San Francisco/San Jose rounded out the top 5 among the 40 metro areas included in this analysis by Redfin at 78.1% and 76.5% respectively.
Most successful bidders are shortening/waiving inspection contingencies and offering to increase their down payments to make up for any price discrepancy if/when the appraisal on the house comes in lower than the purchase price.
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
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Metros with Lowest Levels of Bidding Wars in January 2022
Here are the five metros with the lowest levels of bidding wars in January 2022:
- Cincinnati OH – 42.9%
- New York NY – 54.0%
- Las Vegas NV – 54.4%
- Oklahoma City OK – 54.4%
- Nashville TN – 55.7%
Note the two cities with the biggest upticks in bidding wars from January 2021 to January 2022:
- Bakersfield CA – from 28.6% to 65.0%
- Indianapolis IN – from 39.3% to 65.2%
Thanks to Redfin and Inman.
