Bidding Wars Fall to a One-Year Low

As home prices and mortgage rates continue to rise, bidding wars are falling for the second-straight month, according to Redfin’s latest report…(Redfin)

  • M-O-M: Nationwide, 60.7% of home offers written by Redfin agents encountered competition, down from 63.4% in March.
  • Y-O-Y: Bidding wars were down 6.7 percentage points compared to the same time one year ago.

Riverside, CA not only saw the biggest annual decline in bidding wars , 22 percentage points, but it is now the metro area least likely to see a bidding war with 42.7% of home offers facing competition followed by Miami, FL (53.7%) and Atlanta, GA (56.0%).

  • On the flip side, Worcester, MA is still seeing 76.9% of home offers facing competition followed closely by Denver, CO (76.6%) and Boston, MA (74.8%).

Daryl Fairweather, Redfin Chief Economist, said higher rates are cooling the market off as some house hunters are pulling back…

  • “Higher rates are also limiting homebuyers’ ability to significantly bid up home prices, meaning some homes aren’t selling for as much over the asking price as they would have a year ago. This could help set off a slowdown in home-price growth in the coming months.”

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