Nationwide, 59.6% of home offers written by Redfin agents faced bidding wars in December 2021, according to a new report from Redfin. That’s the lowest share in 12 months and down from a revised rate of 61.3% in November, but up from 54% in December 2020.
Competition has dipped in recent months partly because the housing market typically slows in the winter, the company said.
But while the bidding-war rate has fallen from its pandemic peak of 74.6% in April 2021, the housing market remains quite competitive as house hunters grapple with a record shortage of homes for sale.
“Buyers should anticipate that they may not win a house until their sixth or seventh bid. If you’re the type of person who falls in love with a house, this is not your market,” said Candace Evans, a Redfin team manager in New York. “If you show a house to 10 buyers, you’ll probably get eight offers. An agent on my team just put a home in the Bronx on the market and started receiving offers even though there hadn’t been a single open house or tour yet. The house ultimately received over 10 offers and went for well above the asking price.”
Here is the percentage of offers facing bidding wars, according to price bracket:
- Homes priced between $800,000 and $1 million: 64.6% of offers faced bidding wars in December
- $1 million to $1.5 million range: 62%
- Over $1.5 million: 61.7%
- $200,000 to $800,000: more than 55%
Many house hunters are likely eyeing townhouses after being priced out of the market for single-family homes. Townhouses were the most competitive property type, with 62% of offers facing competition, followed by single-family homes, at 61.3%.
Next came multi-family (54.7%) and condos (53.3%).