An earlier report from the National Association of Realtors found that bidding wars declined last month as more first-time home buyers stopped looking. Redfin is backing that observation for the broader buyers market, noting that 59.8% of offers submitted by its agents during August faced competition, the lowest level so far this year.
A combination of factors led to the frenzied demand seen earlier this year, including extreme shortages of homes for sale in many markets, low mortgage rates that pushed buyers to move quickly before rates might increase and new mobility because of a more widespread ability to work remotely. Rising prices also enticed some buyers to enter the market out of concern over future increases that could impact affordability.
In most years, buyer demand slows in late summer and early fall as children begin the school year. But Redfin’s analysts also point to buyer fatigue over high listing prices causing some buyers to drop out of the market. A slow trickle of more homes becoming available for sale could also relieve the pressure on buyers this fall.
Another indication of an easing housing market includes how many homes sold above their list prices, which dropped to 50 percent during the four weeks ending Sept. 5, down from 55 percent in July. During that same period, 47 percent of homes sold within two weeks of being listed for sale, down from 56 percent in March 2021, the peak for the year.
