7 Housing Markets Where Bidding Wars Disappear

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It seems like only yesterday that the bidding wars were breaking out in housing markets across the country.

As we previously reported, in February, 68.6% of Redfin agent housing bids were involved in a bidding war.

But that was before mortgage rates exploded. Times have certainly changed.

In June, real estate competition dropped to 49.9% of all offers written by Redfin agents, the lowest level since May 2020. This is the fifth month in a row that the metric has declined.

Competition for housing is cooling down particularly quickly in a handful of places. Here are the top markets where bidding wars are disappearing, according to a Redfin analysis of 36 metropolitan areas. The ranking was limited to metros in which Redfin agents submitted an average of at least 50 offers per month between March 2021 and March 2022.

7.Seattle

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Share of Redfin listings in this metro that faced competition in:

  • June 2022: 41.4%
  • June 2021: 71.6%

As we recently noted, Seattle is one of the “10 Fastest Cooling Housing Markets”.

The city has long been known for its expensive housing, and with mortgage rates rising, it’s likely that many potential buyers have simply been overpriced.

6. Detroit

Detroit, Michigan
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Share of Redfin listings in this metro that faced competition in:

  • June 2022: 40.8%
  • June 2021: 68.3%

Interest in housing appears to be stagnating in Motor City. And believe it or not, Detroit still hasn’t fully recovered from the last housing crisis, as we noted in “Housing Boom?” Prices have still not recovered in 477 cities.

5.Honolulu

University of Hawaii Monoa
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Share of Redfin listings in this metro that faced competition in:

  • June 2022: 38.9%
  • June 2021: 69%

Like Seattle, Honolulu is infamous for its high cost of living. But home buyers in paradise seem to be taking a break these days.

4. Raleigh, North Carolina

North Carolina Capitol
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Share of Redfin listings in this metro that faced competition in:

  • June 2022: 38.9%
  • June 2021: 74.1%

The competition fell off a cliff in Raleigh. Just a few months ago, it was one of the U.S. cities where homebuyers were most likely to face bidding wars.

3. Phoenix

Phoenix, Arizona
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Share of Redfin listings in this metro that faced competition in:

  • June 2022: 35.3%
  • June 2021: 58.1%

The housing market is finally cooling down in the desert. As we recently reported, Phoenix is ​​one of the “10 Cities Where It’s Now Easier to Find a Home for Sale.”

2. Riverside, California

Riverside, California
Jon Bilous / Shutterstock.com

Share of Redfin listings in this metro that faced competition in:

  • June 2022: 31.9%
  • June 2021: 70.5%

House prices and rents have risen in this Inland Empire city. But at least for home buyers, things seem to be looking up.

1. Tampa, Florida

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Share of Redfin listings in this metro that faced competition in:

  • June 2022: 28.9%
  • June 2021: 58.8%

It’s the middle of summer, which means Tampa is scorching hot. But the housing market is cooling enough to offer some relief to those looking for a new home.

How to win a bidding war

Real estate agent showing a house to a couple.
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Although the number of people competing for homes has decreased in many markets, there are still many sales that generate multiple offers.

Interestingly, across the country, townhouses are the property type most likely to cause bidding wars: 54.6% of all Redfin listings encountered a bidding war in June.

Next come single-family homes (52.3%), condominiums and cooperatives (47%) and multi-family properties (41.3%).

If you’re considering buying a home, prepare for the possibility of a bidding war by learning the tips from “5 Ways to Beat the Hot Housing Competition.”

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

Laura J. Boyer