Is the Seller’s Market Over?
If the pandemic has been good to anybody, it’s been homeowners listing their properties, as pent-up demand for homes has sent prices skyrocketing. But could this sellers’ market finally be on the way out? Data suggests that may be the case.
A new report by Redfin examining more than 350 metropolitan areas nationwide shows that in the four weeks ending Sept. 5, half of homes sold went for over the asking price — down from a July peak of 55 percent. Homes aren’t moving as quickly, either: 47 percent sold during this period went into contract within two weeks, down from the March apex of 56 percent.
Bidding wars are worth keeping your eye on too, according to Redfin. The report shows that multiple bids on a property were less common nationwide in August than they were in the previous month and a year ago. Among Redfin brokers who submitted offers, 59 percent faced competition in August — 2021’s slowest month for bidding wars — down from a peak of 74 percent in April and 60 percent in August 2020.
Where is the trend most visible? When looking at 48 large metros in which Redfin brokers submitted at least 20 offers in both July and August of this year, multiple bids were at their lowest levels in Oklahoma City — 36 percent in August, down from 60 percent in July and a similar 60 percent a year earlier. Sarasota, Fla., and Richmond, Va., followed, as seen in this week’s chart.
But in other areas, bidding wars were still going strong last month. In Raleigh, N.C., 87 percent of offers faced competition, up from 71 percent in July and 46 percent a year earlier. The San Francisco area followed, with about 71 percent of properties receiving multiple bids in August, up from about 68 percent in July.
This week’s chart, based on data from Redfin, shows the 10 U.S. metro areas with the greatest shares of bidding wars, and the 10 with the lowest, among the 48 areas examined. (Data from metros in which Redfin agents received fewer than 20 bids in August 2020 are not shown.)