Percentage of Properties Receiving Multiple Offers Falls to Two-Year Low as Mortgage Rates Continue to Rise

Rising mortgage rates and record high home prices are causing the market to cool slightly.

In June, the percentage of homes on the market receiving multiple offers fell below 50% for the first time in more than two years. Redfin found that 49.9% of offers received competition in June, down more than 15% year over year and down 7.4% from May. This is the fifth consecutive month of declines in the percentage of multiple offers. Townhomes were the most likely to have buyers in a bidding war at 54.6%, followed by single-family homes at 52.3%, condos and co-ops at 47% and multi-family properties at 41.3%. However, Philadelphia still has a higher percentage of homes receiving multiple offers at 65.7%, the third highest of metros in the U.S. Yet, it is still a decrease for the Philly from both May 2022 and year over year.

“We are seeing longer days on market,” said Heather Petrone-Shook, a Realtor® in Philadelphia. “We are also seeing a change in the market where buyers were once waiving inspections and offering above asking and now the tide has shifted. Some houses are still getting multiple offers but nothing like it was a few short months ago.”

“If the right house at the right price hits the market, buyers are jumping on offers but not necessarily giving away their pensions to do so,” she added.

Not surprisingly, showings are also down. ShowingTime found that showings in June were down 18.7% year over year, representing the third consecutive month of declines. However, the Northeast saw the smallest decrease over showings at just 10.9% year over year. Comparatively, the West saw a 44.1% decrease in showings from June 2021.

However, homes are still moving quickly off of the market. According to realtor.com®, homes spent an average of 32 days on the market in June, down 11% year over year. Home prices are also up, reaching $450,000, a 17% yearly increase. However, there are more listings than last year, which are giving consumers more choices. Active listings in June reached 619,305, a 19% year over year increase.