As reported by the New York Times and provided by Real Estate brokerage firm Redfin, it appears that bidding wars in the national real estate market have made a precipitous drop in frequency. The firm says that only 11 percent of their transactions were bidding wars in the month of July, down from 45 percent in 2018.
It is the lowest percentage since 2011. The Times reports that higher interest rates caused a slow down in the market last fall, and that nervousness about an impending recession could be the cause of less buyers throwing their hats into the bidding war ring. The Times cite’s Redfin economist Daryl Fairweather as saying that “Bidding wars are a bit of a psychological phenomenon. If you’re outbid once, you’re more likely to bid on the next one.”
The frequency of bidding wars in the country’s most competitive markets have caused the trend, dropping as low as 29% in cities like Miami and 35% in New York. Keep an eye on Luxury Guide for updated news on the market trends.