Homebuying competition falls to lowest level since 2011

Competition for homes dropped to its lowest level since November 2011, marking the eighth straight month that the rate of bidding wars has declined, Redfin reports.

Some 51.7 percent of offers made by Redfin agents faced competing offers in November, down from 54.8 percent in October and 63.6 percent a year earlier, according to Redfin’s latest Real-Time Bidding War Report. The share of Redfin offers that faced competition peaked at 75.3 percent in March.

Demand for homes typically declines during the holiday season, but Redfin says it’s fallen less than expected.

“Homebuyers who failed to get an offer accepted early in the year have been stockpiling down payment money all year long,” said Amber Hancock, manager of Redfin’s San Francisco East Bay market. “They’re jumping back in this time as better-qualified, more confident competitors, taking advantage of the easing late-fall market.”

Source: Redfin