In November, 59.5 percent of home offers written by Redfin agents faced competition, the lowest level in 11 months, according to a Redfin report. That’s down from a revised rate of 61.8 percent in October and a pandemic peak of 74.6 percent in April, but up slightly from 57.3 percent in November 2020.
The housing market remains hotter than normal due to record-low mortgage rates and an acute shortage of homes for sale. But homebuyer demand seems to be following a typical seasonal pattern, starting to slow as the year winds down, according to Redfin Chief Economist Daryl Fairweather.
“It’s typical for competition to ease in the winter months as more families take time off for the holidays,” Fairweather said in a release. “While competition waned in November, it was still higher than a year earlier, which is a sign that demand will be strong in the new year.”
Richmond, Va., had the highest bidding-war rate of the metro areas Redfin analyzed, with 80 percent of offers written by Redfin agents facing competition in November. Next came Salt Lake City at 73.8 percent, San Diego at 72 percent, Honolulu at 71.1 percent and Dallas at 70.6 percent.
“Bidding wars are still happening, but buyers are starting to get more breathing room,” Indianapolis Redfin agent Jill Thompson said. The bidding-war rate in Indianapolis dropped to 36.8 percent in November from 73.6 percent in October.
“A few months ago, the typical home was going for $15,000 to $20,000, sometimes even $50,000, over the asking price. Buyers were paying cash, waiving inspection contingencies, and overlooking necessary repairs in order to win,” Thompson said. “Today, buyers are more cautious about overpaying, aren’t waiving inspections as freely as they were in the spring and feel less of a rush to commit to a house after the first tour.”