Bidding Wars Are Back in Key Home Markets

The bidding wars have returned in many key housing markets, which signals optimism among home sellers, according to a report this week from Redfin.

The November “trough” was set and while homebuyers are coming back, home sellers have been slower to return. Mortgage rates at a tick over 6% have made a big difference, having come down from 7%+ in 2022. Mortgage applications are up 28% from early November.

“I’ve seen more homes go under contract this month than in the entire fourth quarter,” said San Jose-based Redfin agent Angela Langone. “Listings that were stagnant in November and December are suddenly getting one to two offers.”

Interest and bidding have also perked up in Seattle, central Florida, and Richmond, Va.

Redfin said the number of its customers requesting first tours has improved by 17 percentage points from the November trough, and the number of people contacting Redfin agents to start the homebuying process has improved by 13 points.

Langone said she is getting texts and emails from prospective buyers now that the new year is in full swing and the holidays have passed.

“Some buyers are having luck winning a home for under asking price, especially if it has been on the market for several weeks, but those days may be numbered,” she said.

Bidding Wars Are Back in Some Markets

Seattle-based Redfin real estate agent Shoshana Godwin said a listing in Issaquah received 12 offers and is under contract for $155,000 over the $1.4 million list price.

“The buyer waived every contingency, handed over $300,000 of earnest money, and is letting the seller stay for free for two months after closing,” Godwin said. “Another home in Seattle’s popular Ballard neighborhood was recently delisted after sitting on the market for over three months. The seller relisted it last week and it went pending in under a day.”

Palm Beach Redfin agent Elena Fleck said in prepared remarks that homes in coveted locations with recent upgrades or renovations are getting multiple offers.

Eric Auciello, Redfin’s team manager in Tampa, said in prepared remarks that he has seen three modest single-family homes priced around $300,000 wind up in bidding wars in central Florida this month, with 16, 17, and 23 competing offers, respectively.

In Richmond, “Homes that are in desirable school districts, priced well and in good condition are going off the market within days or even hours,” Redfin agent Blake Edwards said in prepared remarks.

“Anything under $400,000 will sell within the weekend. Even the $1 million houses that are in great condition are selling within days. It really is property specific right now.”