Competition for home purchases drops again in September
Posted on Tuesday, October 22, 2013 at 10:17:44 AM
Affordable residential financing can give many homebuyers a leg up in today's housing market, but recent data indicated that people will be finding less competition in the segment as bidding wars are starting to fade away.
The control sellers once had is slipping, according to data from Redfin. Competition among buyers dropped in September, and only 58.3 percent of offers reported by Redfin agents sparked a bidding war, down from August's 60.5 percent.
At its highest point, that figure was at 76 percent in March, when sellers were able to almost always field multiple offers at once. Now, those buyers have regained a level of control and homes are starting to sell slightly below their asking prices, down 0.4 percent compared to the August's 0.3 percent.
When bidding wars occurred at a regular frequency, more attractive offers could be tied into residential financing, according to Realtor.com. If equity is the reason for a down payment, a bidding war could complicate the process. By connecting it to financing instead, buyers have more options if the sale doesn't go through. Either way, the best way to win a bidding war is with the highest possible price.
Thankfully for some, that isn't too common at the moment. On the contrary, buyers can now shop around and take their time due to lower activity in the housing market.