NEWS: America's Homebuyer Competition Drops for First Time in 6 Months

According to one the latest reports by the brokerage firm Redfin, the prices on housing competition has finally shown a decrease on a month-to-month basis since September 2021.

Although prices are still quite high compared to what was projected, this slight decline gives a lot of buyer some hope on having this real estate market more accessible to their budgets. 

"Most homebuyers are still encountering bidding wars, but competition is beginning to cool because surging mortgage rates and home prices are prompting some Americans to back out or put their buying plans on hold," said Redfin Chief Economist Daryl Fairweather. "We expect bidding wars to ease further in the coming months as rising mortgage rates price more buyers out of the market. That should provide some relief for people who can still afford to buy, as they'll likely face fewer competing offers and may no longer need to offer drastically over the asking price in order to win. Unfortunately, the slowdown in competition won't help those who have already been priced out of homeownership and are now grappling with soaring rental costs."

Some areas would have the most competitive housing markets, such as San Jose and Boston. On the other side, you'd have areas like Riverside and Nashville. 

"March was the first month in two years that I had a weekend with zero house tours. People are getting priced out," said Maria Giron, a Redfin real estate agent in the Bay Area. "Some buyers are in shock and dropping out altogether. Others are looking at more affordable options like smaller homes or neighborhoods that are farther out. The buyers I'm working with who are most sensitive to the rise in mortgage rates are first-time buyers looking for homes in the $500,000 to $700,000 range."

As the bidding war varies across Metro areas in the country, see below a list with details on this.