If the pandemic has been good for anyone, it was homeowners who listed their properties, as pent-up demand for homes drove prices up. But is this seller’s market finally endangered? The data suggests that this could be the case.
A new report from Redfin examining more than 350 metropolitan areas nationwide shows that in the four weeks ending September 5, half of homes sold were above asking price, up from a peak of 55% in July. Homes aren’t moving that fast either: 47% of sales during that period were contracted within two weeks, up from 56% in March.
Bidding wars are also worth watching, according to Redfin. The report shows that multiple offers on a property were less common across the country in August than they were the month before and a year ago. Among Redfin brokers who submitted bids, 59% faced competition in August – the slowest month of 2021 for bidding wars – up from a peak of 74% in April and 60% in August 2020.
Where is the trend most visible? Looking at 48 major metropolises where Redfin brokers submitted at least 20 bids in July and August of this year, several bids were at their lowest levels in Oklahoma City – 36% in August, up from 60% in July and a rate similar 60. percent from a year earlier. Sarasota, Fla. And Richmond, Va. Followed, as shown in this week’s chart.
But in other areas, the bidding wars were still fierce last month. In Raleigh, North Carolina, 87% of bids were competitive, down from 71% in July and 46% a year earlier. The San Francisco area followed, with about 71% of properties receiving multiple offers in August, up from about 68% in July.
This week’s chart, based on data from Redfin, shows the 10 U.S. metropolitan areas with the highest shares of bidding wars, and the 10 with the lowest, among the 48 areas examined. (Data from subways in which Redfin agents received less than 20 offers in August 2020 is not shown.)