Bidding-war rate in markets Redfin operates in nearly on par with September 2020 levels

For the fifth consecutive month the number of bidding wars on home sales declined, according to a new report from brokerage Redfin.

In September, 58.9% of offers written by Redfin agents ended up in a bidding war, the lowest rate so far in 2021 and nearly on par with the September 2020 bidding war rate of 58.3%. A month prior, 60.8% of offers written by Redfin agents faced competition.

The rate of bidding wars hit a peak in April 2021 with 74.3% of offers facing competition.

Although this is a clear sign of a slowing market, housing economists say the changes are along the lines of typical seasonal slowdowns. In addition, with one-third of homes stayed on the market for less than a week and inventory was down 13% from a year prior. Housing economists at Redfin are not concerned that this slowdown could be a harbinger.

“It’s typical to see a decline in competition as families head back to school and the weather cools down,” Redfin deputy chief economist Taylor Marr said in a statement. “Buyers also aren’t having to offer as much above the asking price as they were in the spring, when competition in the housing market was peaking. As mortgage rates continue to rise, we can expect bidding wars to keep slowing.”