Bidding Wars Fall To Lowest Level Since Feb 2021

Bidding wars dropped to their lowest level since February 2021 as the housing market begins to cool, with only 57.8% of home offers facing competition in May, according to Redfin. Though more than half of prospective buyers are still facing competition when bidding on a home, that number is down from 60.9% the month prior and a pandemic peak of 68.8% a year earlier. A typical home received 5.3 offers in May, down from 6.8 in April and 7.4 in YOY. This is the fourth straight month of declines. The unadjusted bidding war rate was 60.8%, down from 67.8% month-over-month and 71.8% YOY. “Homes are now getting one to three offers, compared with five to 10 two months ago and…

Morning Roundup (3/14/2022)– Highlighting Ukraine, Cash Offers

Good Morning! Today is Monday, March 14. Russian forces hit Kyiv with heavy artillery strikes this morning after days of fighting in the suburbs. Barack Obama tested positive for Covid-19. Less than two months after announcing his retirement, quarterback Tom Brady said he will return to the Tampa Bay Buccaneers and play again. The Mortgage Note Reports Help Us Highlight Those Who Are Supporting The People Of Ukraine: The people of the world are watching the horror unfolding in Ukraine, and we at The Mortgage Note want to highlight those in the housing industry who are stepping up to help. AIME Lobbying: AIME is teaming up with lobbying firm Forbes Tate Partners to represent brokers in government affairs. Cash Is…

All-Cash Offers Most Effective Strategy For Winning Bidding Wars

Homebuyers who offered all cash won more bidding wars in 2021, making it the most effective strategy to beat out other buyers, according to a new Redfin report. Waiving the financing contingency and conducting a pre-inspection also increased potential buyers’ chances when facing off with other bidders, making them 31% and 25% more likely to win, respectively. Escalation clauses and waiving inspection contingencies are frequently seen strategies, but because they’re so common they’re also ineffective. They also do not benefit one buyer over their competition. Redfin also suggests offering more than asking price and waiving the appraisal contingency to set buyers apart from the crowd, as many can’t afford to pay all cash. Buyers planning to offer over asking may…

Morning Roundup (2/24/2022)– Bidding Wars Rule In Jan, Applications Down

Good Morning! Today is Thursday, February 24. Russian President Vladimir Putin announced a military operation in Ukraine. President Biden will address the nation with an update on the attacks at 12:30 p.m. The Mortgage Note Reports “Battling It Out”: A Redfin report found that 70% of homebuyers faced bidding wars in January, making it the most competitive month in Redfin’s data. Loan Applications Down: Mortgage loan application volume fell 13.1% last week to their lowest level since December 2019, MBA’s weekly survey shows. And in other mortgage and housing news… Seeking Comment: MISMO is seeking public comment on updates to Engineering Guideline 7 establishing class words that enable consistency in the naming and structure of data point names. Panel Market: …

Bidding Wars Hit Highest Level Since April 2020

Bidding wars hit their highest level since at least April 2020, with 70% of home offers from Redfin agents facing competition in January, a new Redfin report found. This is up from 67.7% in December and 61% in January 2021. The report chalks up the increased bidding to a combination of rising interest rates, high demand, and low inventory. January marked the first time rates hit 3.5% since the beginning of the pandemic, and have jumped to nearly 4% in the first weeks of February. New listings continue dropping, hitting record lows. “Rising mortgage rates are intensifying an already-severe shortage of homes for sale because buyers are feeling more urgency to buy while homeowners are feeling less urgency to sell—an…

Bidding Wars Reach Lowest Point Since December 2020

Bidding wars on home offers from Redfin fell to 59.5% in November, their lowest level in eleven months, the company reported. It’s the first time it’s fallen below 60% since December 2020. Month-over-month, bidding wars fell 2.3%, dropping from 61.8% in October. However, they were up slightly year-over-year, from 57.3% in November 2020. They reached a pandemic peak in April when 74.6% of home offers written by Redfin agents faced competition. The top three cities for bidding wars were Richmond, VA, at 80%, Salt Lake City at 73.8%, and San Diego at 72%. Honolulu followed up at 71.1% and Dallas just made the top five at 70.6%. “Bidding wars are still happening, but buyers are starting to get more breathing…

CoreLogic: Double-Digit Rent Growth In September

Strong demand and the labor market are fueling single-family rent price increases which remain at record highs. September data from CoreLogic’s Single-Family Rent Index shows rents increased 10.2% year-over-year (YOY), compared to a 2.6% YOY increase in September 2020. Rents increased across all four tiers of rental prices used by CoreLogic. Lower-priced rentals (less than 75% of the regional median) saw an increase of 8.3% YOY, while rents in the lower-middle price range (75%-100% of the regional median) rose 9.3% YOY, both more than doubling their growth from the same time in 2020. Rents for higher-priced properties broke 10%, with higher-middle priced (100%-125%) rents climbing 10.5%, compared to 2.4% in September 2020. Higher-priced rentals (125% or more of the regional…

Morning Roundup (9/13/2021)- Forbearances And Bidding-War Rates Both Down

Good Morning! Today is Monday, September 13. Democratic Senators returning from a week long break are considering a compromise on the $3.5 trillion spending bill. The Federal Reserve said continuing inflation comes from unusually high prices for goods like electronics and cars. Supreme Court Judge Amy Coney Barrett said she’s worried the public sees the Court as a partisan body, while refusing to comment on the unsigned Texas abortion ruling. And in mortgage and housing news… Bidding-War Rates Hit New Low: A Redfin analysis found 58.8% of home offers faced competition, the lowest rate in 2021. Forbearances Down: After dropping last week, the total number of mortgages in active forbearance declined another 2% this week, according to Black Knight. Love Letters: Prospective homebuyers are writing “love letters” to get an…

Ceasefire In Bidding Wars? Redfin Reports Lowest Point In 2021

In another sign that the red-hot housing market may be returning to earth, the number of houses caught up in buyers’ bidding wars has fallen to a 2021 low. According to a Redfin analysis, 58.8% of home offers generated a competition among buyers. That’s down from April’s peak of 74.3 percent. Redfin found that more than half of its agents still face challenges from other bidders on home offers, but that number is inching down. In July, 62.1% of offers written had competition for the home. Though it’s down, the number remains high, rivaling August 2020’s 59.4% bidding-war rate. Home prices are cooling as potential buyers back away from soaring prices and more inventory arrives on the market. Forbearance expirations…

Home Offers Still Facing Competition

More often than not, you still can’t put an offer on a home without someone else making a competing offer. For the sixth month in a row, more than half of home sales have been the subjects of bidding wars, according to a new report released by Redfin on its properties. In October, 56.8 percent of Redfin offers on homes in the United States faced competition – down from a peak of 59.3 percent in August. “Has the market calmed down since the summer? Yes, but every offer I submit still faces multiple competing bids and we continue to see a lot more buyers than we normally would at this time of year,” said Melissa Killham, a Redfin real estate…