An earlier report from the National Association of Realtors found that bidding wars declined last month as more first-time home buyers stopped looking. Redfin is backing that observation for the broader buyers market, noting that 59.8% of offers submitted by its agents during August faced competition, the lowest level so far this year.
A combination of factors led to the frenzied demand seen earlier this year, including extreme shortages of homes for sale in many markets, low mortgage rates that pushed buyers to move quickly before rates might increase and new mobility because of a more widespread ability to work remotely. Rising prices also enticed some buyers to enter the market out of concern over future increases that could impact affordability.
In most years, buyer demand slows in late summer and early fall as children begin the school year. But Redfin’s analysts also point to buyer fatigue over high listing prices causing some buyers to drop out of the market. A slow trickle of more homes becoming available for sale could also relieve the pressure on buyers this fall.
Another indication of an easing housing market includes how many homes sold above their list prices, which dropped to 50 percent during the four weeks ending Sept. 5, down from 55 percent in July. During that same period, 47 percent of homes sold within two weeks of being listed for sale, down from 56 percent in March 2021, the peak for the year.
Advertisement
Related Stories
Affordability
Survey Shows Buyers Have Homebuying Regrets
More than 80% of respondents have regrets about their home purchase and 50% of upcoming buyers would consider forgoing using an agent
Affordability
Is Fractional Homeownership Any Kind of Solution for Housing Attainability?
The imbalance between housing supply and demand is spurring some innovative options within the real estate industry
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders