Study: Drop in Bidding Wars, Notably in Tampa

SEATTLE – Nationwide, slightly less than half (49.9%) of home offers written by Redfin agents faced competition on a seasonally adjusted basis in June – the lowest share since May 2020 and the first time the bidding-war rate has been below 50% since then – one of the first months of lockdown for the COVID-19 pandemic.

Bidding wars saw a significant drop in just one month, and they’re also down year-to-year. In May, one month earlier, 57.3% of homes faced a bidding war. And one year earlier, in June 2021, more than two out of three sales (65%) had a bidding war.

In a comparison of national metros, Redfin say Tampa’s bidding wars dropped to about one in four (28.9%) from 58.8% a year earlier. While the lowest percentage of the bidding war rates recorded last month, it wasn’t the biggest drop. In Riverside, California, 31.9% of June listings saw a bidding war, but that’s down from 70.5% one year earlier.

Bidding-War Rates by Metro Area in June 2022

• Tampa: 28.9%, down from 54.2% in May and 58.8% in June 2021
• Riverside, Calif.: 31.9%, down from 47.6% in May and 70.5% in June 2021
• Phoenix: 35.3%, down from 54.5% in May and 59.1% in June 2021
• Raleigh, N.C.: 38.9%, down from 55.4% in May and 74.1% in June 2021
• Honolulu: 38.9%, down from 47.8% in May and 69.0% in June 2021
• Detroit: 40.8%, down from 68.9% in May and 68.3% in June 2021
• Seattle: 41.4%, down from 61.1% in May and 71.6% in June 2021
• Austin, Texas: 45.5%, down from 59.2% in May and 72.4% in June 2021
• Minneapolis: 45.7%, down from 53.5% in May and 65.0% in June 2021
• Miami: 45.7%, down from 53.5% in May and 65.0% in June 2021
• Las Vegas: 46.9%, down from 76.6% in May and 59.7% in June 2021
• Orlando: 47.5%, down from 57.3% in May and 69.9% in June 2021
• Nashville: 47.7%, down from 68.9% in May an 72.1% in June 2021
• San Antonio, Texas: 47.4%, down from 58% in May and 69.6% in June 2021
• Charlotte, N.C.: 48.1%, down from 62.0% in May and 80% in June 2021
• Denver: 49.3%, down from 62.1% in May and 65.5% in June 2021
• Washington, D.C.: 50.6%, down from 62.3% in May and 63.9% in June 2021
• San Jose, Calf.: 50.7%, down from 59.5% in May and 72.7% in June 2021
• New York, NY: 50.8%, down from 56.5% in May and 60.2% in June 2021
• Portland, Ore.: 51.0% , down from 63.8% in May and 70.8% in June 2021
• San Diego: 51.6%, down from 70.1% in May and 73.1% in June 2021
• Atlanta: 51.8%, up from 51.7% in May and down from 59.3% in June 2021
• Houston: 51.9%, down from 55.9% in May and 59.7% in June 2021
• Chicago: 52.8%, down from 64.2% in May and 57.3% in June 2021
• San Francisco: 53.3%, down from 59.4% in May and 71.0% in June 2021
• Los Angeles: 53.6%, down from 69.3% in May and 70.1% in June 2021
• Sacramento: 54.1%, down from 57.0% in May and 75.4% in June 2021
• Colorado Springs: 55.9%, down from 54.5% in May and 45.9% in June 2021
• Dallas: 57.7%, down from 75.3% in May and 69.6% in June 2021
• Olympia, Wash.: 58.0%, down from 47.2% in May and 80.0% in June 2021
• Baltimore: 60.5%, down from 67.2% in May and 72.1% in June 2021
• Worcester, Mass: 62.7%. down from 82.1% in May and 70.5% in June 2021
• Indianapolis: 64.3%, down from 69.0% in May and 71.4% in June 2021
• Philadelphia: 65.7%, down from 68.8% and 66.7% in June 2021
• Boston: 71.7%, down from 74.5% in May and 71.7% in June 2021
• Providence, R.I.: 77.6%, up from 46.3% in May and 77.1% in June 2021

Higher mortgage rates, high home prices, inflation and a falling stock market have eroded homebuyer budgets, causing some house hunters to drop out of the market. Roughly 60,000 home-purchase agreements were called off in June, equal to 14.9% of homes that went under contract that month, according to Redfin economists – the highest percentage on record, with the exception of the start of the pandemic.

“While the market is cooling, it’s not coming to a crashing halt,” said Shoshana Godwin, a Redfin real estate agent in Seattle. “House hunters who can still afford to buy should consider taking advantage of the slowdown given that there’s way less competition.”

Competition increased on a year-over-year basis in just two of the 36 markets Redfin analyzed, Colorado Springs, Colorado, and Providence, Rhode Island.

© 2022 Florida Realtors®