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Homebuying competition falls to lowest level in 2 years

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house competition A recent Redfin report found that nationwide the coronavirus pandemic has eased to levels not seen since the early days.

In July, 44.3% of housing offers from Redfin agents faced national competition, down from 50.9% in June and 63.8% in July last year, according to real estate brokers.

The data showed 3.5 offers for a typical home last month, down from 4.1 in June and 5.3 last July.

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July was the sixth month in a row that the bidding war was easing. It also had the lowest share of housing offers facing competition on record, except for April 2020, when “the outbreak of the coronavirus nearly brought the housing market to a halt,” Redfin reported Friday.

A Redfin real estate yard sign painted in front of a house put up for sale on October 31, 2017 in Seattle, Washington. (Photo by Getty Images/Getty Images for Stephen Brashear/Redfin)

Uncomfortably high inflation and mortgage rates have devalued the number of potential buyers from the market.

according to Mortgage Buyer Freddie Mac, Interest rates on 30-year fixed mortgages averaged 5.22% on Thursday. This is up from last week’s average of 4.99%. A year ago, fixed 30-year mortgage rates averaged 2.87%.

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According to Redfin, properties have been on the market longer and housing shortages are easing, giving buyers who have not withdrawn from the market more choice and more room to negotiate.

redfin

Signing Redfin, a technology-driven real estate agency for sale in San Ramon, CA on September 17, 2019. (Photo by Smith Collection/Gado/Getty Images/Getty Images)

As a result, sellers are lowering their asking prices.About 8% of the products on the market every week Asking price goes down According to the brokerage, this is the highest share on record.

Overall, Phoenix had the lowest bid match rate, with just over a quarter of housing offers encountering competition in July.

Riverside, California wasn’t far behind, with 31% of housing offers facing competition. In Seattle, 31.5% of housing offers faced competition, while in Austin, Texas and Nashville, Tennessee, 31.7% and 33.3% of housing offers faced competition, respectively.

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“Many of these neighborhoods have attracted many suburban homebuyers during the pandemic, driving up prices and making them prohibitively expensive for some home hunters. This is one of the reasons why the bid competition is relatively low,” said the brokerage firm.

Raleigh, North Carolina, on the other hand, had the highest bidding rate, with 63.8% of homes facing competition.

House

A man walks past a condo for sale on October 17, 2010 in Santa Monica, California. (Reuters/Lucy Nicholson/Reuters photo)

About 63% of homes in Honolulu also faced competition, followed by 60.5% of homes in Providence, Rhode Island.

Philadelphia, Pennsylvania and Worcester, Massachusetts have 60.4% and 54.8% of homes facing competition, respectively, according to brokers.

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