Redfin Reports 59% of Home Offers Written by Redfin Agents Faced Bidding Wars in August--the Lowest Level Since 2020

Rhea-AI Summary

In August, 58.8% of home offers by Redfin agents faced competition, marking a record low for 2021, down from 62.1% in July and 74.3% in April. This decline reflects a cooling market with stabilized home prices after prior peaks. Additionally, 50% of homes sold above list prices, down from 55% in July. The highest competition rates were in Raleigh (86.7%) and San Francisco (70.7%). While sellers maintain control, buyer selectivity is increasing as they push back against high prices, leading to fewer offers.

Positive

• The bidding-war rate decreased, indicating a cooling market that may benefit buyers.
• Home-price growth is stabilizing after months of record gains.

Negative

• The decline to 58.8% for bidding wars signals reduced buyer demand.
• Fewer homes sold above list prices, impacting seller confidence.

SEATTLE, Sept. 13, 2021 /PRNewswire/ -- (NASDAQ: RDFN) —In August, 58.8% of home offers written by Redfin agents faced competition—a record low for 2021, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's down from a revised rate of 62.1% in July and a peak of 74.3% in April. It's also slightly lower than the August 2020 bidding-war rate of 59.4%.

While sellers continue to have the upper hand, buying a home has become slightly easier this summer as the country's acute shortage of homes for sale is no longer intensifying and the market has undergone its typical seasonal slowdown. Home-price growth is stabilizing following months of record gains, and measures of competition aside from the bidding-war rate are also losing steam. For example, 50% of homes sold above their list prices during the four weeks ending Sept. 5, down from a peak of 55% in July. Of the homes that went under contract during that period, 47% had an accepted offer within the first two weeks on the market, down 9 percentage points from the 2021 peak set in March.

"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," said Nicole Dege, a Redfin real estate agent in Orlando, FL, where the bidding-war rate dropped to 57.5% in August from 78.9% in July. "Buyers are getting a bit more selective. I have one seller who recently put his four-bedroom single-family pool house on the market, but the roof was shot. He had to lower his asking price to $423,000 from $427,000 and agree to spend around $7,000 to replace the roof in order to attract bidders. Six months ago, he would have easily been able to sell that home as-is without dropping the price."

Raleigh and San Francisco Have the Highest Bidding-War Rates

Raleigh, NC had the highest bidding-war rate of the 48 U.S. metropolitan areas in this analysis, with 86.7% of offers written by Redfin agents facing competition in August. Next came San Francisco/San Jose, at 70.7%, and Tucson, AZ, at 70.5%. Cincinnati and Salt Lake City rounded out the top five, with bidding-war rates of 70.4% and 68.1%, respectively.

"Sellers remain in control, but the next month or two will be very telling," said Raleigh Redfin agent Stacey Delgado. "The market has just started to cool down over the last couple of weeks, which isn't surprising because kids are heading back to school. Still, there are parts of the city that remain fiercely competitive, like the Research Triangle, which is Raleigh's tech hub and has highly-rated schools. Out-of-state buyers who are flush with cash and can work remotely continue to flock there and bid up home prices."

To view the full report, including charts and methodology, please visit: 
https://www.redfin.com/news/real-estate-bidding-wars-august-2021

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. 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. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 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 August 2021?

The bidding-war rate for Redfin in August 2021 was 58.8%, the lowest level since 2020.

How does the bidding-war rate in August 2021 compare to July?

In July 2021, the bidding-war rate was 62.1%, indicating a decrease in competition for homes.

Which city had the highest bidding-war rate in August 2021?

Raleigh, NC, had the highest bidding-war rate at 86.7% in August 2021.

What trend is observed in home prices according to the August 2021 report?

Home-price growth is stabilizing following months of record gains, suggesting a market cooldown.

What percentage of homes sold above list prices during the four weeks ending September 5, 2021?

50% of homes sold above their list prices during that period, down from 55% in July.