“While competition waned in November, it was still higher than a year earlier, which is a sign that demand will be strong in the new year,” he said.
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Richmond, Va. saw the highest bidding-war rate of the 44 US metros in Redfin’s analysis, with 80% of offers written by Redfin agents facing competition in November. Salt Lake City and San Diego followed at 73.8% and 72%, respectively. Honolulu (71.1%) and Dallas (70.6%) rounded out the top five.
“Bidding wars are still happening, but buyers are starting to get more breathing room,” said Jill Thompson, a Redfin agent in Indianapolis, where the bidding-war rate dropped to 36.8% in November from 73.6% in October.
“A few months ago, the typical home was going for $15,000 to $20,000—sometimes even $50,000—over the asking price. Buyers were paying cash, waiving inspection contingencies, and overlooking necessary repairs in order to win,” Thompson continued. “Today, buyers are more cautious about overpaying, aren’t waiving inspections as freely as they were in the spring, and feel less of a rush to commit to a house after the first tour.”