Homeownership remains a top financial priority for many Americans. With this said, high home prices, rising rates, & a 40-year record high in inflation is providing significant headwinds for most buyers. If you were in the market to buy a home a year ago, there was a greater than 50% chance that any offer you may have placed would have had at least one competing offer for the same home. Fast forward to now and we are seeing the prevalence of bidding wars retracting some. In fact, approximately 44.6% of offers written last month faced competition at the national level. Year-over-year, bidding wars are down 63.5%. Needless to say, this is welcomed news for home buyers that are already battling a tight inventory of homes for sale.
Bidding war rates for some Florida metros
A recent analysis looked at the Miami, Tampa, & Orlando metro markets to see how they ranked in the prevalence of bidding wars as compared to the rest of the country. While Miami came close to the national average, the Tampa and Orlando markets have seen more dramatic reductions in bidding wars on a month-to-month basis.
Shares of offers that faced competition:
|% in August 2022
|% in July 2022
|% in August 2021
Interestingly, we have observed a slight uptick in offers that faced competition in the Miami market for the month of August as compared to the month prior. With this said, we are seeing a noticeable reduction in bidding wars across all markets on a year-over-year basis. Although we are also seeing properties remain on the market for longer periods of time, the inventory of homes for sale continues to be a headwind for buyers. With rates rising, we are also seeing more buyers considering townhouse purchases as opposed to single-family homes. This is resulting in the townhouse market becoming the most competitive sector in housing. For more information on the pros and cons of buying a townhouse, click here.
Are you looking to buy a property in South Florida? We can help. Contact our team of experts at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your mobile device.