One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars. With so many buyers looking to purchase a home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic and it drove home prices way up.
If you tried to buy a house over the past two years, you probably experienced this firsthand and you may have been outbid on several homes along the way. But here's news that you've probably been waiting for. The data shows clear signs that bidding wars are easing.
According to the National Association of Realtors, the number of offers on recently sold homes has declined considerably over the past few months. This graphs shows home nationally. We're seeing a high of around 5 offers earlier this year.
Locally in South Florida, it wasn't uncommon for homes to get 10 to 25 offers if they were in good neighborhoods and fully updated. But the latest data shows that average was down just shy of three offers per recently sold home. This shift is happening largely because of rising mortgage rates moderated buyer demand and slowed home sales resulting in a growing supply of homes on the market.
Essentially, more choices for buyers. So what does this mean for you?
If you put your home search on pause because you were outbid last year, and because you don't want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a sellers market, an up kick in inventory gives you a window of opportunity to jump back in.
You may still be competing with some buyers but it likely won't be anything like it was just a few months ago.
Bottomline, if you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your home search. Today, bidding wars are easing and that means less competition for you as a buyer.
If you're serious about buying a home, or making a move, let's connect to get ready today.
Posted by Andy Mandel on