Homebuyer Competition Eases in June as More Homes Hit the Market

Rhea-AI Summary

In June 2021, 65% of home offers from Redfin agents faced competition, a decline from 72.1% in May and down from a peak of 74.1% in April. This represents an increase from 56.8% in June 2020, indicating a competitive market despite recent easing. Factors contributing to the decline include buyer fatigue and an improvement in housing supply with new listings up 4% year-over-year. Sarasota, FL, saw the highest bidding-war rate at 87%. Redfin's report highlights changing buyer behaviors as they begin to include contingencies amid a softer competition landscape.

Positive

• Increased housing supply with new listings up 4% year-over-year.
• Bidding-war rate remains higher than June 2020, indicating ongoing market activity.

Negative

• Bidding-war rate decreased from 72.1% in May to 65% in June, suggesting reduced competition.
• Buyer fatigue may lead to lower engagement in the housing market.

SEATTLE, July 13, 2021 /PRNewswire/ -- (NASDAQ: RDFN) -- 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, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Still, that's higher than the 56.8% bidding-war rate Redfin saw in June 2020, when the housing market was starting to rebound from a temporary standstill triggered by pandemic shutdowns.

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 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."

Redfin agents report that more buyers are starting to keep contingencies—a sign that competition is beginning to abate.

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.

To view the full report, including the bidding war rates by metro, please visit: https://www.redfin.com/news/real-estate-bidding-wars-june-2021/

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

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SOURCE Redfin

FAQ

What was the bidding-war rate for Redfin in June 2021?

The bidding-war rate for Redfin in June 2021 was 65%.

How did June 2021's bidding-war rate compare to previous months?

June's rate decreased from 72.1% in May and peaked at 74.1% in April 2021.

What factors are contributing to the decrease in homebuyer competition?

Buyer fatigue and an increase in housing supply are contributing to the decrease.

Which metropolitan area had the highest bidding-war rate in June 2021?

Sarasota, FL, had the highest bidding-war rate at 87%.

What trends were reported in the housing market by Redfin?

The report indicates a decline in competition and more buyers keeping contingencies.