Bidding wars have seen a decrease this summer, while the number of listings has grown, possibly meaning relief is on the horizon for buyers struggling to find a house.
According to Redfin data, 60.1% of offers faced competition in July, down 6.4% from June and down from 74.1%, the pandemic peak, in April 2021. Bidding wars are still up from July 2020, but only by about 2.2%, the report found. In Pennsylvania, both Pittsburgh and Philadelphia saw decreases in bidding wars. Sixty-three percent of Philadelphia listings faced competition, down from 64.2% in June and 66.2% in July 2020. Realtor.com® also found that 22% of homes in Philadelphia dropped their listing price in July, making it a great opportunity for buyers looking in the city.
“The biggest thing I am seeing is less appointments,” said PAR First Vice President Al Perry, a Realtor® in Philadelphia. “There are less bidding wars and more downward price adjustments. The downward price adjustments can be a bit misleading though. With the significant growth we’ve seen in the market, many recent listings entered the market at asking prices that anticipated continued price growth. Many recent price reductions may be indicative of a flattening of pricing and not decreases in the market values. Buyer confidence remains strong and houses are selling. We need to remember that 12 appointments and four offers over asking in the first 24 hours couldn’t be sustained long term. A shift to more normal supply and demand would continue a robust real estate market and give much needed relief to buyers who have struggled to earn respect in such a one-sided market.”
In Pittsburgh, only 54.7% of listings had more than one offer, down from 57.1% in June and 63.9% in July 2020. Additionally, Pittsburgh is generally considered one of the most affordable cities in the U.S. for homebuyers.
More inventory may be what’s decreasing bidding wars and allowing more buyers the opportunity to enter the market. Realtor.com® found that there were 10% more homes on the market in July compared to June, but listings were down 33% year to year. Homes are also lasting longer on the market, at 38 days. In Pennsylvania, listings are up 10% compared to June, and down 20% year over year. However, the median listing price is down slightly, 1%, from June, and up about 6% year over year. Additionally, homes in Pennsylvania are lasting longer on the market, compared to the U.S. median, at 41 days.