10 Housing Markets Where Bidding Wars Are Disappearing

During the last month of summer, the formerly red-hot U.S. housing market cooled considerably, causing bidding wars to disappear from coast to coast.

Such bidding wars — meaning at least two people bid on a home — were the rule earlier this year and last year. But in August, just 44.6% of home offers written by Redfin agents nationwide featured bidding wars, down from 63.5% a year ago, the real estate brokerage says.

Bidding war rates have been falling for seven straight months now, and that means sellers are facing a new reality.

In a press release, Redfin listing agent Sam Chute of Miami says:

“The worst thing a seller can do right now is price their home too high, and the best thing they can do is price just below market value to catch buyers’ interest. Resourceful sellers understand that the market is intertwined with rising mortgage rates. Buyers aren’t going to pay extreme amounts of money or waive contingencies like they did last year, but they will pay a fair price for a nice home.”

In some markets, the turnaround from last year is stunning. Following are the areas where bidding wars are disappearing most dramatically.

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.

10. Charlotte, North Carolina

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

• August 2022: 31.4%
• August 2021: 68.8%

Charlotte is one of many markets where stiff buyer competition was the norm not so long ago. In August of last year, more than two-thirds of home purchases ended up in a bidding war.

Today, that number has dropped to less than one-third.

9. Las Vegas

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

• August 2022: 30.9%
• August 2021: 56.3%

The housing market is pulling back in a big way in Sin City. According to the Las Vegas Review-Journal:

“Sales totals are tumbling locally, available inventory has soared and sellers are increasingly slashing their prices.”

8. Orlando, Florida

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

• August 2022: 30%
• August 2021: 56.7%

Orlando is one of the “15 Markets With the Most Home Sales Getting Canceled.” That newfound lack of interest in local homes means bidding wars are disappearing fast.

7. Colorado Springs, Colorado

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

• August 2022: 29.7%
• August 2021: 62.5%

As we reported in July, inventory levels are rising fast in Colorado Springs.

With more properties available for sale, there is less need for people to become locked in a bidding war over the same home.

6. Austin, Texas

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

• August 2022: 28.6%
• August 2022: 58%

Bidding wars have plunged in Austin during the past year. But that doesn’t mean you’ll find bargain prices anytime soon.

A local report recently found that Austin is “nowhere near achieving goals” of building more affordable homes.

5. Minneapolis

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

• August 2022: 27%
• August 2022: 50%

Minneapolis is among 10 big metros people are leaving in hopes of finding more affordable homes elsewhere.

Perhaps less competition for homes is taking the air out of bidding wars here.

4. Phoenix

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

• August 2022: 26.4%
• August 2021: 57.9%

Phoenix is among the “10 Housing Markets That Are Cooling Fastest.”

A year ago, well over half of sales involved bidding wars. Now, it is just over one-quarter.

3. Olympia, Washington

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

• August 2022: 24.2%
• August 2021: 60.7%

How significantly has the market turned in Olympia? Property analytics firm CoreLogic says there is now a 70% chance home prices will dip here over the next 12 months.

2. Tampa, Florida

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

• August 2022: 23.8%
• August 2021: 53.6%

Tampa is one of the “20 Housing Markets Overvalued by More Than 50%.”

The plunge in bidding wars is one sign that prices here are in real danger of falling.

1. San Antonio

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

• August 2022: 21.7%
• August 2021: 59.8%

In August, San Antonio was one of “15 Markets With the Most Home Sales Getting Canceled.” The staggering decline in bidding wars here is indicative of a housing market that has cooled dramatically.

How to win a bidding war

While the number of people competing for homes has fallen in many markets, there are still plenty of properties that generate multiple offers.

Across the nation, townhouses are the type of property most likely to provoke bidding wars: 44.1% of all such Redfin offers met with a bidding war in August.

Redfin says townhouses are especially popular because they don’t cost as much as single-family homes.

Here are the percentages of bidding wars for other types of homes:

• Single-family homes: 42.1%
• Multi-family properties: 40.2%
• Condominiums: 37%

If you plan to buy a home, prepare for the possibility of a bidding war by learning the tips in “5 Ways to Beat the Hot Housing Competition.”