If the pandemic was good for everyone, it was homeowners listing their properties as pent-up demand for homes made prices soar. But could this seller's market finally be on its way? The data suggest that this could be the case.
A new report from Redfin, which examines more than 350 metropolitan areas nationwide, shows that in the four weeks leading up to September 5, half of homes sold were above asking price, up from a high of 55 percent in July. The houses are not moving too quickly either: 47 percent of the properties sold during this period were signed within two weeks, compared to the peak value in March of 56 percent.
Redfin says it's also worth keeping an eye on bidding wars. The report shows that multiple bids on a property were less common across the country in August than in the previous month and a year ago. Among Redfin brokers who submitted bids, 59 percent faced competition in August – the slowest month of 2021 for bidding wars – up from a high of 74 percent in April and 60 percent in August 2020.
Where is the trend most visible? Looking at 48 major metropolitan areas where Redfin brokers made at least 20 bids in both July and August this year, multiple bids in Oklahoma City were at their lowest levels – 36 percent in August, up from 60 percent in July and a similar 60 Percent a year earlier. Sarasota, Florida and Richmond, Virginia followed, as seen in this week's chart.
But in other areas the bidding wars were still strong last month. In Raleigh, N.C., 87 percent of listings were competitive, up from 71 percent in July and 46 percent a year earlier. The San Francisco area followed, where about 71 percent of properties received multiple bids in August, up from about 68 percent in July.
This week's graph, based on data from Redfin, shows the 10 U.S. metro zones with the highest levels of bidders and the 10 lowest among the 48 areas studied. (Data from metropolitan areas where Redfin agents received fewer than 20 bids in August 2020 will not be displayed.)