5 Housing Markets Where Bidding Wars Are Disappearing Fast

Home sale prices plunged in April by a margin not seen in more than a decade, according to newly released findings from real estate brokerage firm Redfin.

In April, pending home sale prices fell 4.1% year over year. That equals a drop of $17,603 for a median priced home, the biggest on record at Redfin. And in percentage terms, it was the biggest drop since January 2012.

It was the third consecutive monthly decline in prices nationwide. And in some markets, bidding wars — which were all the rage just over a year ago — are disappearing fast.

Across the U.S., just 45.9% of home offers written by Redfin agents faced competition from another bidder in April. That is down from 59.2% a year ago. Following are markets where homebuyers are especially likely to find a lot less competition these days.

5. Charlotte, North Carolina

Redfin listings in this metro area that faced competition in:

• April 2023: 36% (which reflects a year-over-year decrease of 31.4 percentage points)
• April 2022: 67.4%

The market has cooled dramatically in North Carolina’s biggest city. Charlotte is also among the “5 Places Where Home Price Declines Are Crushing Investors.”

4. Tampa, Florida

Redfin listings in this metro area that faced competition in:

• April 2023: 42.2% (which reflects a year-over-year decrease of 32.4 percentage points)
• April 2022: 74.6%

A lot of buyers are having second thoughts in Tampa, which has landed itself on the list of the “11 Markets With the Most Home Sales Getting Canceled.”

3. Nashville,Tennessee

Redfin listings in this metro area that faced competition in:

• April 2023: 39.5% (which reflects a year-over-year decrease of 33.4 percentage points)
• April 2022: 72.9%

Bidding wars may have faded in Nashville for now, but a change of tune could be on the way for Music City. Nashville is one of “The Top 10 Housing Markets for 2023, According to Zillow.”

2. Austin, Texas

Redfin listings in this metro area that faced competition in:

• April 2023: 36.3% (which reflects a year-over-year decrease of 36.1 percentage points)
• April 2022: 72.4%

Austin is another formerly red-hot market that is cooling. Earlier this year, we reported that the Texas capital was No. 1 among the “10 Housing Markets That Are Cooling Fastest.”

1. Colorado Springs, Colorado

Redfin listings in this metro area that faced competition in:

• April 2023: 22.2% (which reflects a year-over-year decrease of 40.6 percentage points)
• April 2022: 62.8%

Formerly booming Colorado Springs hasn’t quite gone bust, but things have taken a big turn. The city is among the “10 Places With the Most Home Sellers Slashing Prices.”

How to win a bidding war

While the number of people competing for homes has fallen in many markets, there are still properties that generate multiple offers.

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.”