7 Housing Markets Where Bidding Wars Are Disappearing

Home for sale
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If you are shopping for a home, the news is getting better and better.

Just 44.3% of home offers that Redfin agents wrote faced some type of competition — meaning at least two people bid on a home — in July, according to a new report. That is a dramatic fall from 63.8% during the same period of 2021.

The percentage of homes involved in bidding wars has been sinking for six months now, a clear sign that higher mortgage rates and very high home prices are dampening demand for homes.

According to Redfin:

“Properties are lingering on the market longer and the housing shortage is easing up, giving buyers more options to choose from and room to negotiate. Some sellers are slashing their asking prices as a result.

In fact, about 8% of listings now see a price cut, the highest share on record, Redfin says.

Competition for housing is cooling especially fast in a handful of places. Following are the top markets where bidding wars are disappearing, according to a Redfin analysis of 36 metro areas.

The ranking was limited to metros in which Redfin agents submitted an average of at least 50 offers per month between March 2021 and March 2022.

7. Charlotte, North Carolina

Charlotte, North Carolina
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Share of Redfin listings in this metro that faced competition in:

  • July 2022: 34.6%
  • July 2021: 71%

Charlotte is just one of many markets where stiff buyer competition was the norm not so long ago. In July of last year, nearly three-quarters of home purchases ended up in a bidding war.

Today, that number has dropped to just over one-third.

6. Sacramento, California

Homes in Sacramento, California
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Share of Redfin listings in this metro that faced competition in:

  • July 2022: 34.3%
  • July 2021: 73.3%

California’s capital also has seen a steep drop in homebuyer interest. Perhaps that’s why the city now makes the list of “10 Housing Markets That Are Most at Risk of a Downturn.”

5. Nashville

House in Nashville, Tennessee
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Share of Redfin listings in this metro that faced competition in:

  • July 2022: 33.3%
  • July 2021: 73.1%

East Coast, West Coast or right in the heart of the country — formerly hot housing markets everywhere are getting downright frosty.

Homebuyers have a lot more inventory to choose from than before, as Nashville is now one of the “10 Cities With the Biggest Spike in Home Listings.”

4. Austin, Texas

Row houses in Austin, Texas
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  • July 2022: 31.7%
  • July 2021: 62.1%

Bidding wars have dropped by almost exactly half in Austin over the past year.

This is one of the “10 Cities Where Remote Workers Drove up Home Prices,” but things appear to be returning to a sense of more normalcy here.

3. Seattle

Seattle house neighborhood
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  • July 2022: 31.5%
  • July 2021: 60.1%

As we recently noted, Seattle is one of the “10 Housing Markets That Are Cooling Fastest.”

The city long has been known for its expensive housing, and with mortgage rates rising, it’s likely that many would-be buyers simply have been priced out.

2. Riverside, California

Riverside California neighborhood
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Share of Redfin listings in this metro that faced competition in:

  • July 2022: 31%
  • July 2021: 64.3%

Home prices and rents have been surging in this Inland Empire city. But at least for home shoppers, things seem to be improving.

1. Phoenix

Homes in Phoenix, Arizona
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Share of Redfin listings in this metro that faced competition in:

  • July 2022: 26.6%
  • July 2021: 53.9%

The housing market is finally cooling down in the desert. As we recently reported, Phoenix is among the “10 Cities Where It’s Now Easier to Find a House for Sale.”

How to win a bidding war

Realtor showing a couple a home.
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While the number of people competing for homes has fallen in many markets, there are still plenty of sales that generate multiple offers.

Interestingly, across the nation, townhouses are the type of property most likely to provoke bidding wars: 43.5% of all such Redfin offers met with a bidding war in July.

That’s followed by single-family homes (42.9%), condominiums and co-ops (39.7%), and multi-family properties (38.9%).

If you plan to buy a home, prepare for the possibility of a bidding war by learning the tips in “5 Ways to Beat the Hot Housing Competition.”

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