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.
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 your clients put their home search on pause because they were outbid last year or because they didn’t want to deal with the peak intensity of bidding wars, they can now breathe a welcome sigh of relief. While it’s still a sellers’ market, an uptick in inventory gives them a window of opportunity to jump back in. They may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.
If your clients put their plans on pause because of intense bidding wars in recent years, it may be time to kick off their home search again and re-engage them. Today, bidding wars are easing and that may mean less competition for them as a buyer.