New Redfin numbers show that March was just a tad easier for shoppers than February…but it is still very clearly a seller’s market.
According to new data out from Redfin, 65 percent of home offers faced competition in March, down from 67 percent in February. A small change, but it does mark the first decrease in buyer competition in six months.
Still, bidding wars remained more common than they were a year earlier. March’s bidding-war rate was 69.3 percent, down from 71.9 percent in February. However, that same rate was 62.2 percent in March 2021.
“Most homebuyers are still encountering bidding wars, but competition is beginning to cool because surging mortgage rates and home prices are prompting some Americans to back out or put their buying plans on hold,” said Redfin Chief Economist Daryl Fairweather. “We expect bidding wars to ease further in the coming months as rising mortgage rates price more buyers out of the market. That should provide some relief for people who can still afford to buy, as they’ll likely face fewer competing offers and may no longer need to offer drastically over the asking price in order to win.
“Unfortunately, the slowdown in competition won’t help those who have already been priced out of homeownership and are now grappling with soaring rental costs,” Fairweather continued.