Why Have Bidding Wars Hit a Decade Low?

November 14, 2019
Bidding war
Image by Ryan McGuire from Pixabay

Selling your home and itching for the drama of a bidding war? Redfin's new report says to hold the popcorn: the percent of offers that faced a bidding war declined by 20 percent in a year. Despite a tight market, buyers would rather find better deals elsewhere to avoid getting out the gauntlets. 

Competition in the fall housing market is falling. Just 10% of offers written by Redfin agents for their clients in October faced a bidding war, down from 39% a year ago, according to the Seattle-based real estate brokerage.

Mortgage rates are still significantly lower than they were a year ago but moved slightly higher during the month, making homes less affordable overall.

Home price gains had also been falling all year, but now those gains are reaccelerating. Those two factors translate into both higher down payments and higher monthly payments. Buyers may be starting to feel that strain on their wallets.

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