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 available for sale, fiercely competitive bidding wars became the norm during the pandemic – which 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 the average was shy of three submissions per recently sold home. This shift is happening mainly 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 didn’t want to deal with the peak intensity of bidding wars, you can breathe a 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 compete with some buyers, but it likely won’t be anything like it was just a few months ago.
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, which may mean less competition for you as a buyer. So if you’re serious about buying a home or making a move, let’s connect to get started today.