In September, 58.9% of home offers faced competition—a record low for 2021. That’s down from a revised rate of 60.8% in August and a peak of 74.3% in April.
September marked the 5th straight month of declines, putting the bidding-war rate on par with the level seen a year earlier at 58.3%.That’s lowest level in nine months, amid a seasonal housing-market slowdown and an uptick in mortgage rates.
The housing market has been cooling due to a typical seasonal slowdown, which has helped ease competition, but homes are still selling faster than usual for this time of year. This demand is largely fueled by an ongoing shortage of homes for sale. New listings fell 9% 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 earlier.
It’s typical to see a decline in competition as families head back to school and the weather cools down. 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, bidding wars are expected to keep slowing.
Raleigh and Boston Have the Highest Bidding-War Rates
Raleigh North Carolina had the highest bidding-war rate of the 45 U.S. metropolitan areas in this analysis, with 73.9% of offers written by Redfin agents facing competition in September. Next came Boston at 71.7% and Indianapolis at 71.4%. Sacramento and San Diego California rounded out the top five, with bidding-war rates of 70.5% and 70.3%, respectively.
Fall in Jacksonville Florida is historically a slow time, as fewer people are looking to move where the bidding-war rate dropped to 50% in September from 71.4% in August. Even though there aren’t as many bidding wars, listings typically sell quickly, making it a busier market than previous years. During the spring and summer, listings were receiving 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.”
Metros must have had at least 20 offers recorded by Redfin agents in both September 2021 and August 2021 to be included in this analysis.