The frequency of bidding wars on homes has dropped to the lowest level this year — the latest sign that the housing market may be cooling and reverting back to its usual seasonal patterns.
A new report from Redfin
found that 58.8% of the offers on homes written by the company’s real-estate agents faced competition in August. That’s down from 62.1% the month prior and a peak of 74.3% reached back in April. Redfin defines a bidding war as any situation where there are at least two competing bids on a home.
It represents the lowest level of competition for homes since December, when the bidding war rate was only 53.7%. Notably, August 2021’s figure is slightly below the level posted a year earlier, a sign that the market may be reverting to its standard seasonality.
The peak home-buying season typically occurs in the spring and summer, as families seek to…