In September, 59 percent of home offers written by Redfin agents faced competition, a record low for 2021, according to a recent Redfin report. That’s down from a revised rate of 60.8 percent in August and a peak of 74.3 percent in April. September marked the fifth-straight month of declines.
The housing market has been cooling due to a typical seasonal slowdown, which has helped ease competition, according to Redfin, but homes are still selling faster than usual for this time of year. The demand is largely fueled by an ongoing shortage of homes for sale. New listings fell 9 percent year-over-year in September and the typical home that sold went under contract in 18 days, more than a week faster than a year ago.
“It’s typical to see a decline in competition as families head back to school and the weather cools down,” Redfin Deputy Chief Economist Taylor Marr said in a release. “Buyers also aren’t having to offer as much above the asking price 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.”
Of the 45 metro areas Redfin analyzed, Raleigh, N.C., had the highest bidding-war rate, with 73.9 percent of offers written by Redfin agents facing competition in September. Next came Boston at 71.7 percent, Indianapolis at 71.4 percent, Sacramento, Calif., at 70.5 percent, and San Diego at 70.3 percent.
“Fall in Jacksonville is historically a slow time, as fewer people are looking to move,” Jacksonville, Fla., Redfin agent Heather Kruayai said. The bidding-war rate dropped there from 71.4 percent in August to 50 percent in September. “Even though there aren’t as many bidding wars, listings are still selling quickly, so it’s busier than previous years. During the spring and summer, I would get listings that would receive 30 offers within 24 hours of hitting the market and people offering as much as $70,000 over the asking price. That’s not as common now.”