Competition Among Buyers Falls to Two-Year Low

Homebuyers facing competition fell to 44.3% in July, representing the sixth consecutive month of decreases.

According to an analysis by Redfin, this is down from 50.9% in June and 63.8% year over year. It’s the lowest rate since April 2020, when real estate had been disrupted by the pandemic. The average home that received multiple offers had 3.5 offers, down from 4.1 in June and down from 5.3 offers a year prior. High mortgage rates and lower-than-normal inventory is making some buyers pump the breaks on their process. While mortgage rates have dropped slightly, consumers are still feeling their impact. Mortgage payments are up 37.3% year over year.

New listings are down 12% year over year, the biggest drop in more than two years. However, the total number of properties for sale is up 4% compared to the same time last year. More homes are cutting their prices as well. About 8% of homes each week drop their price, the highest share on record. Only 43% of homes sold above their listing price, down 9% year over year. The average home sold for 100.6% of the listing price.

Homes are still not lasting very long on the market. On average, a home is on the market for 22 days, which is up two days year over year but still shorter than pre-pandemic times.

However, homebuying in the Philadelphia area remains competitive. According to the report, 60.4% of homes had multiple offers, down from 66.2% a year earlier and down 0.6% from June, but the fourth-highest in the country in July.