Bidding Wars Slow as More Available Homes Hit the Market

According to a recently released report from Redfin, the Seattle-based technology-powered real estate brokerage, the number of offers written by their agents that faced competition declined from 72.1% in May to 65% in June — well below the pandemic peak of 74.1% in April of this year. Nonetheless, that is higher than the 56.6% bidding war rate Redfin saw in June 2020. The report notes that the housing market has been losing steam in recent weeks following months of relentless competition and surging prices that were driven by an intensifying housing shortage and a pandemic moving spree made possible by remote work. Buyer fatigue is likely one factor pushing down the competition rate, with some house hunters moving to the sidelines after losing bidding war after bidding war or getting priced out. An improving supply situation may also be making a difference, with new listings up 4% year over year. That means there are more properties hitting the market for buyers to bid on. Redfin agents report that more buyers are starting to keep contingencies — a sign that competition is beginning to abate.