The percentage of home sales that were competitive returned to winter lows in July, but the majority still faced bidding wars, according to Redfin.
Slightly more than 60% of Redfin sales had multiple offers in July, down from a revised 66.5%
The move adds to signs that the housing market, while still hot, may be cooling a little. Other recent measures have shown
“We’re now seeing five to eight offers on homes instead of 25, and they’re coming in $5,000 to $10,000 above the listing price instead of $50,000 to $60,000,” said Scott Mercer, a Redfin real estate agent in Sacramento, in a press release. “Buyers are pushing back. They’ve even started including appraisal contingencies again and making requests for repairs — things that were pretty much unheard of last year.”
While even some particularly hot markets like Sacramento — which had the sixth-highest share of competitive sales in July — have been showing signs of softening, future fluctuations remain possible depending on the course of the pandemic and its impact on local markets.
In the case of Sacramento, for example, information technology workers moving back to the office likely accounted for the bidding-war decline in the market, which is known for drawing people in the industry from the Bay Area seeking cheaper prices. That trend could change, Mercer said.
“It will be interesting to see if migration to Sacramento rebounds if the COVID situation continues to worsen,” Mercer said.
The share of Sacramento home sales with multiple offers in July was 72.9%. The only markets that were more competitive in July were: Fort Collins, Colo., 77.3%; Orlando, Fla., 77%; Nashville, Tenn., 74.6%; Honolulu, 74.1%; and Colorado Springs, Colo., 73.2%.
