Bidding wars lessen in June as buyer fatigue hits housing market

Home buyer competition declined slightly in June as listings increased and price surges discouraged a growing number of consumers.

The overall share of properties facing bidding wars dropped for the second month in a row, to 65% from 72.1% in May and the all-time high of 74.1% in April, according to Redfin. It marks a year-over-year jump from 56.8% and it’sthe 14th month in a row with over 50% of listings receiving multiple bids.

The drop in bidding wars falls in line with Fannie Mae’s June Home Purchase Sentiment Index, which found that a larger share of potential home buyers felt market conditions were unfavorable, compared to May.

“Buyer fatigue is likely one factor pushing down the competition rate, with some house hunters moving to the sidelines after losing bidding war after bidding war or getting priced out,” Lily Katz, Redfin senior data journalist, said in the report. “An improving supply situation may also be making a difference, with new listings up 4% year over year.”

However, the buyer climate varies across the country. Sarasota, Florida faced the highest competition among the 52 largest metro areas, shooting up to 87% from 70% month-over-month. Rates of 82.9% in Charleston, S.C., 80% in Reno, Nev., 78.9% in Charlotte, N.C., 78.6% in Kansas City, Mo., and 78% in Spokane, Wash., rounded out the top six.

“Prices have gone up so much and most homes are going well above asking,” Cambria Henry, owner and managing broker of Spokane-based Haven Real Estate Group, said in an interview. “It’d be more exciting if I had more houses to sell.”

On the other side, Colorado Springs, Colo., had the least competition at 43.3%, dropping from 63.8% in May. Miami followed at 49.5%, then came 51.9% in both Tucson, Ariz., and Virginia Beach, Va.