The bidding-war rate remains higher than it was a year ago, but has dropped to 65% from its peak earlier this year. That’s partly because new listings have returned to pre-pandemic levels, giving buyers more options.
In June, 65% of home offers written by Redfin agents faced competition, down from a revised rate of 72.1% in May and a pandemic peak of 74.1% in April. Still, that’s higher than the 56.8% bidding-war rate we saw in June 2020, when the housing market was starting to rebound from a temporary standstill triggered by pandemic shutdowns.
An offer is considered part of a bidding war if a Redfin agent reported that it faced at least one competing bid. This data is subject to revision.
The housing market has been losing steam in recent weeks following months of relentless competition and surging prices that were driven by an intensifying housing shortage and a pandemic moving spree made possible by remote work.
Buyer fatigue is likely one factor pushing down the competition rate, with some house hunters moving to the sidelines after losing bidding war after bidding war and/or getting priced out. An improving supply situation may also be making a difference, with new listings up 4% year over year. That means there are more properties hitting the market for buyers to bid on.
“The first half of this year was red hot—it was almost impossible to get an offer accepted. But recently, we’ve started to see buyers get cold feet,” said Laura Sechrist Molenda, a Redfin real estate agent in Southern California. “Two of my buyers just had their offers accepted because the sellers’ first buyers backed out. The market is still competitive, but buyers are more trepidatious than they were at the start of 2021, and less willing to pull out every stop in order to win.”
It’s also typical for competition to ease in the summer following spring homebuying season, so seasonality may be at play as well.
Redfin agents report that more buyers are starting to keep contingencies—a sign that competition is beginning to abate.
“Two months ago, sellers were getting 10 to 15 offers within 48 hours and buyers were waiving every contingency. That’s no longer the case,” said Boise, ID Redfin agent Shauna Pendleton. “One of my sellers listed their home last Thursday and only had one offer by Monday. They accepted that offer, which matched the $395,000 list price and was contingent upon the buyer’s ability to sell their existing home. It was only the second contingent offer I’ve seen a seller accept in over a year.”
Pendleton continued: “Buyers are exhausted. They’re not buying out of desperation anymore now that there are more homes to choose from. They’re no longer snapping up homes that would require thousands of dollars of upgrades. They’re also just busy, enjoying summertime travel and getting ready for back-to-school season.”
Sarasota and Charleston Have the Highest Bidding-War Rates
Sarasota, FL had the highest bidding-war rate of the 52 U.S. metropolitan areas in this analysis, with 87% of offers written by Redfin agents facing competition in June. Next came Charleston, SC, at 82.9%, and Reno, NV, at 80%. Charlotte, NC and Kansas City, MO rounded out the top five, with bidding-war rates of 78.9% and 78.6%, respectively.
“It’s still really competitive when there’s a lower-priced home in a very-sought after area,” said Redfin agent Kristi Miller of Seattle, which also had a high bidding-war rate, at 71.2%. “But bidding wars are starting to slow for mid- and higher-priced homes.”
Metros must have had at least 20 offers recorded by Redfin agents in both June 2021 and May 2021 to be included in this analysis.
Bidding-War Rates by Metro Area
To be included in the table below, metros must have had at least 20 offers recorded by Redfin agents in both June 2021 and May 2021. The table is sorted by highest to lowest bidding-war rates in June 2021. Blank spaces in the June 2020 column represent metros for which there were fewer than 20 offers submitted by Redfin agents that month.
|U.S. Metro Area||Share of Redfin offers that faced bidding wars in June 2021||Share of Redfin offers that faced bidding wars in May 2021||Share of Redfin offers that faced bidding wars in June 2020|
|Kansas City, MO||78.6%||75.9%||—|
|Grand Rapids, MI||76.9%||80.8%||—|
|San Diego, CA||70.0%||77.2%||71.6%|
|San Francisco / San Jose, CA||69.7%||76.2%||62.5%|
|San Antonio, TX||68.4%||66.4%||45.8%|
|Los Angeles, CA||64.1%||72.1%||68.8%|
|Salt Lake City, UT||62.4%||82.2%||67.6%|
|Fort Collins, CO||60.5%||60.0%||—|
|Las Vegas, NV||57.8%||68.5%||44.0%|
|New York, NY||52.7%||58.8%||52.8%|
|Oklahoma City, OK||52.4%||66.7%||—|
|Virginia Beach, VA||51.9%||79.7%||66.7%|
|Colorado Springs, CO||43.3%||63.8%||51.6%|