Did you know? In July, 60% of offers written by real estate professionals nationwide faced competition. While this is still high, that’s the lowest level since January 2021. By definition, a bidding war is defined by an offer that has at least one competing offer made on the same property. For perspective, the peak in the number of bidding wars was seen in April 2021 when 74% of offers faced competition. Overall, we are beginning to see competition for home purchases starting to ease.
Reasons for the decrease in bidding wars
For starters, it would be unrealistic to expect prices to simply continue to rise at the alarming rate that they have been over the past 18 months. As we have discussed in past articles, wages are already having a difficult time keeping up with not only home prices but also inflation. Some other notable reasons for the decrease in bidding wars include:
- Inventory of homes for sale is beginning to increase, resulting in less competition and thus less bidding wars
- Typical seasonal trends where demand begins to ease as we enter the latter stages of summer and into fall
- Home prices remain high, likely pricing out would-be home buyers
- A current spike in the number of COVID-19 cases is likely impacting the number of buyers and sellers entering the market
The National Association of Realtors® (NAR) reports that the median existing-home price for all housing types in June was $363,300, up 23.4% compared to a year earlier. Needless to say, this is a significant increase in median existing-home prices. As expected, many Americans are currently priced out of their local market and therefore have remained in the rental housing market. Skyrocketing inflationary pressures combined with another spike in COVID-19 cases certainly presents many unknowns in the market. With this said, South Florida continues to be a desirable option for many Americans looking to relocate. We foresee the work-from-home model continuing in a permanent fashion for many organizations and thus more of these Americans are opting to move to The Sunshine State.
Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!