The bidding wars that put smiles on the faces of sellers and simultaneously drove buyers to rip their hair out weren’t as frequent in August, according to the latest report from brokerage Redfin.
In August, 58.8% of offers written by Redfin agents faced a bidding war, down from the peak in April of 74.3%, and below the August 2020 bidding war rate of 59.4%.
But buyers shouldn’t get too excited. The report attributes this decrease to the normal seasonal slowdown, causing the shortage of inventory to slow as well.
Another indicator of a slowing market cited by Redfin is the percentage of homes that sold above list price. During the four-week period that ended Sept. 5, it dropped to 50% from a peak of 55% in July. Despite these obvious signs of a slowing market, Redfin states that it is in line with the typical seasonal decline.
“Sellers are still pricing their homes very high, but a lot of buyers have had enough and are no longer willing to pay the huge premiums they were six months ago. Instead of 25 to 30 offers on turnkey homes, we’re now seeing five to seven,” Nicole Dege, a Redfin real estate agent from Orlando said in a statement.