Real Estate Brokerage Says Competition Will Continue to Ease Into the Fall

SEATTLE-Redfin (www.redfin.com), the technology-powered real estate brokerage, has released its July 2013 Bidding War Report based on Offer Insights, statistics compiled from thousands of offers written each month by Redfin agents for their home-buying clients. Competition for homes across the U.S. dropped from 68.6% in June to 63.3% in July. The number of Redfin offers facing competition peaked in March at 75.7%. This bidding war data is in line with other Redfin research that points toward the strong sellers’ market beginning to shift toward more balance, giving frustrated home-buyers a bit of relief. Redfin agents report that buyers who have been in the market for even a few months have noticed the change in their favor. Increasing inventory, rapidly rising home prices and interest rate spikes all contribute to the continuing trend toward a less competitive market. Less measurable market forces such as buyer fatigue and buyers taking summer vacations probably also played a role in this trend. Redfin agents and analysts are closely monitoring bidding war rates, expecting them to continue their downward trend into the fall. This would be a contrast to last year’s pattern, which saw the market heat up in the autumn months.

The report’s key findings include: