New listings continue to fall, but what strikes me is how smooth the drop has been since July. A little blip up on coming soon listings this week could help in future weeks. Pending listings tend to rise and fall in step with new listings as is the current case. Good news for buyers is multiple offers are easing.
Showings continue show the same trend as last year, not surprisingly in lock step with new listings.
Bidding wars are easing not only locally but nationally as well. The National Association of Realtors reports that the average number of offers on US homes sold has been dropping over the last few months, down to 2.8 offers last month. Read about what is happening with multiple offers locally in my July market update… July 2022 real estate market update… a story of multiple offers
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
Buyers May Face Less Competition as Bidding Wars Ease
One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars. With so many buyers looking to purchase a home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic – and it drove home prices up. If you tried to buy a house over the past two years, you probably experienced this firsthand and may have been outbid on several homes along the way.
But here’s the news you’ve been waiting for: data shows clear signs bidding wars are easing this year.
According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined considerably over the past few months (see graph below):
The graph shows homes were seeing a high of around five offers earlier this year. But the latest data shows that average was down to just shy of three offers per recently sold home. This shift is happening largely because rising mortgage rates moderated buyer demand and slowed home sales, resulting in a growing supply of homes on the market. Essentially, more choices for buyers.
What This Means for You
If you put your home search on pause because you were outbid last year or because you didn’t want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a sellers’ market, an uptick in inventory gives you a window of opportunity to jump back in. You may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.
Bottom Line
If you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your home search. Today, bidding wars are easing and that may mean less competition for you as a buyer. If you’re serious about buying a home or making a move, let’s connect to get started today.
