More buyers are retreating due to mortgage rates and soaring home prices. This means that sellers are less likely to receive multiple offers, but less competition when buying their next home.
Nationally, 57.8% of housing offers written by Redfin agents faced seasonally adjusted competition in May, the lowest level since February 2021. , And 4 consecutive monthly declines. On an unadjusted basis, the bid war rate in May was 60.8%, down from 67.8% in April 2021 and 71.8% in May.
According to data submitted by Redfin agents, typical homes in the bid war received 5.3 offers in May, down from 6.8 in April and 7.4 in May 2021.
If the Redfin agent reports that it has received at least one competing bid, the offer is considered part of the bidding war. The statistics for this analysis are subject to revision. The following property types, price ranges and metropolitan area data are not seasonally adjusted. Redfin bid war data dates back to April 2020.
Higher mortgage rates and higher home prices have prevented many Americans from making home purchases, intensifying competition for homebuyers.Typical monthly mortgage payments for homebuyers are now $ 2,514 at present 5.78% Mortgage rates. This is a 49% increase from the previous year when mortgage rates were 2.93%. Redfin economists expect bid war rates to drop below 50% by the end of the year.
“Compared to 5-10 2 months ago and 25-30 6 months ago, homes are currently receiving 1-3 offers,” he said. Jennifer BowersRedfin Real Estate Agent Nashville.. “The offer isn’t as high as it used to be. I recently listed a three-bedroom, three-bathroom home in a very cute neighborhood for $ 399,900. Eventually, the price was $ 12,000 on inspection. It was overtaken, but three months ago, the buyer would have paid $ 60,000 to request an inspection and waive it. “
Homebuyer competition fell the most in Providence, Riverside and Raleigh
of Rhode Island Providence, 45.3% of home offers created by Redfin agents faced competition in May from 82.7% in the previous year. In this analysis, a 37.4 percentage point decline was the largest of the 36 metropolitan areas in the United States.Next came Riverside, California (41% vs 73.7%; -32.6 ppts), Raleigh, NC (52.2% vs 82.9%; -30.7 ppts), San Francisco (57.7% vs 78.2%; -20.5 ppts) and Orlando, Florida (51% vs 71%; -20 ppts).
To be included in this analysis, Metro must have an average of at least 50 offers submitted by Redfin agents between March 2021 and March 2022. Scroll to the bottom of this report to see a table containing data for all 36 metros.
“Last year, when interest rates bottomed out and demand was hot, you might have sold your home and made more money, but especially if you’ve built up a lot of housing assets, you’ll find your next home. May be easier, “Bowers said. NashvilleThe bid war rate in May dropped from 73.3% in the previous year to 67.2%.
Competition increased year-over-year in just three of the 36 markets analyzed by Redfin.of Las Vegas, 74.5% of home offers created by Redfin agents faced competition in May from 65.4% (+9.1 ppts) in May 2021.Next came Worcester, Massachusetts (81.8% vs 77.3%; +4.5 ppts) and Miami (63.2% vs 62.1%; +1.1 ppts).
Worcester, Las Vegas, and Boston homebuyers are most likely to face a bid war
In addition to seeing the largest year-over-year decline in competition Riverside When providence The overall bid war rate was the lowest at 41% and 45.3%, respectively.Next came Olympia, Washington, 47.2% of home offers created by Redfin agents encountered competition in May.To conclude the bottom five Honolulu (47.8%) and Minneapolis (48.7%).
Worcester The bid war rate was the highest at 81.8%.continue Las Vegas (74.5%), Boston (72.6%), Dallas (72.3%) and Philadelphia (69.3%).
Townhouses are the most competitive property type
Townhouses are more likely to encounter competition than any other type of property, with 64.6% of Redfin’s offers facing a bid war in May. This was followed by single-family homes (61.6%), condominiums (58.2%), and condominiums / cooperatives (54.7%).
Some homebuyers are looking for townhouses because they are priced from the single-family market. Typical homes signed in March were 1,720 sq ft, down 1.8% from 1,751 sq ft in the previous year. Recent Redfin analysis found.
Bid-War Fees by Metropolitan Area
The table below sorts from the lowest bid war rate to the highest bid war rate in May 2022.
| U.S. metropolitan area | May 2022: Share of Redfin Offers Faced with Competition | April 2022: Share of Redfin Offers Faced with Competition | May 2021: Share of Redfin Offers Faced with Competition |
|---|---|---|---|
| Riverside, California | 41.0% | 45.3% | 73.7% |
| Rhode Island Providence | 45.3% | 74.1% | 82.7% |
| Olympia, Washington | 47.2% | 70.3% | 63.4% |
| Honolulu, Hawaii | 47.8% | 65.8% | 62.5% |
| Minneapolis, Minnesota | 48.7% | 68.1% | 66.3% |
| Atlanta, Georgia | 50.2% | 59.8% | 64.6% |
| Orlando, Florida | 51.0% | 67.1% | 71.0% |
| Raleigh, NC | 52.2% | 64.3% | 82.9% |
| New York, NY | 53.4% | 63.2% | 57.0% |
| Houston, Texas | 54.0% | 61.9% | 62.7% |
| Phoenix, Arizona | 54.1% | 61.4% | 68.8% |
| Tampa, Florida | 54.2% | 73.4% | 66.7% |
| Colorado Springs, CO | 54.5% | 62.8% | 63.8% |
| Sacramento, California | 56.6% | 73.6% | 65.2% |
| San Antonio, Texas | 56.7% | 59.1% | 67.2% |
| Austin, Texas | 56.8% | 72.8% | 68.6% |
| San Francisco, California | 57.7% | 60.7% | 78.2% |
| San Jose, California | 58.5% | 70.1% | 75.8% |
| Charlotte, North Carolina | 58.9% | 66.3% | 76.9% |
| Portland, Oregon | 60.5% | 71.2% | 76.9% |
| Washington DC | 61.1% | 68.6% | 70.6% |
| Seattle, Washington | 61.2% | 72.6% | 75.5% |
| Denver, Colorado | 61.6% | 76.4% | 77.2% |
| Chicago, Illinois | 61.7% | 69.1% | 66.0% |
| Miami, Florida | 63.2% | 54.9% | 62.1% |
| Los Angeles, California | 66.6% | 70.4% | 74.0% |
| Baltimore, Maryland | 67.0% | 73.3% | 77.1% |
| Nashville, Tennessee | 67.2% | 72.9% | 73.3% |
| Detroit, Michigan | 67.6% | 80.8% | 79.0% |
| San Diego, California | 68.0% | 72.2% | 77.5% |
| Indianapolis, Indiana | 69.0% | 69.2% | 73.4% |
| Philadelphia, Pennsylvania | 69.3% | 70.5% | 70.9% |
| Dallas, Texas | 72.3% | 71.6% | 74.3% |
| Boston, Massachusetts | 72.6% | 76.5% | 76.4% |
| Las Vegas, Nevada | 74.5% | 63.1% | 65.4% |
| Worcester, Massachusetts | 81.8% | 75.3% | 77.3% |