Bidding Wars: More Likely than Not in All but One Fla. Metro

SEATTLE – In a company survey of Redfin agents with at least 20 May written home offers found that 70.4% entered into a bidding war. However, it’s a slight improvement month-to-month. In April, 73.6% of the written offers faced a bidding war with at least one other buyer.

In Florida, the results by metro were mixed: Three of the five Florida metros studied saw a month-to-month decrease, while two had an increase:

• Cape Coral: 75.0% had a bidding war in May; 59.1% had one in April
• Tampa: 69.1% had a bidding war in May; 69.9% had one in April
• Orlando: 64.4% had a bidding war in May; 67.7% had one in April
• Miami: 57.2% had a bidding war in May; 55.4% had one in April
• Jacksonville: 34.4% had a bidding war in May; 46.2% had one in April

The drop in bidding wars in May might not be significant, however. It could suggest a cool down in the housing market, but it could also be due to a seasonal drop in demand as the spring home buying season draws to a close, according to analysts. However, there are a few signs that rising home prices and slowing buyer demand may be coming into play.

“The housing market was going 100 miles per hour and now it’s down to 80,” says Redfin Chief Economist Daryl Fairweather. “After months of surging prices and low inventory, some house hunters are moving to the sidelines – either because they’re priced out or burned out. Americans are spending more of their money on things like travel and dining out now that pandemic restrictions are being lifted.”

Nationwide, Spokane, Washington, had the highest bidding-war rate, with 86.7% of offers in the study facing competition in May. Next came Raleigh, North Carolina, at 84.5%, and Tucson, Arizona, at 81.8%. Salt Lake City and Charleston, South Carolina, rounded out the top five, with bidding-war rates of 81.5% and 79.3%, respectively.

© 2021 Florida Realtors®