Showings, Bidding Wars Increased in January

While most Realtors® generally agree that January is a slower time of year in the business, this unpredictable market shows to expect nothing to remain “as usual.”

Showings of listed homes in January increased both year over year and month over month, according to ShowingTime. Year over year, showings increased 7.7%, while showings from December to January rose 46.4% across the U.S. In the northeast section of the country, which includes Pennsylvania, showings were up 7% year over year and up 49% from December, suggesting that after the holidays, buyers were eager to get back into home shopping.

Redfin also declared January 2022 the “most competitive month on record for homebuyers,” suggesting that low inventory also contributed to the frenzy. The site found that 70% of homes received more than one offer in January, up from 67.7% in January and up 61% year over year. Townhouses faced the most competition, with 72.6% involved in bidding wars, followed by single-family homes at 70.6%, then condos at 62.9% and multi-family properties at 62.7%. The report suggests that rising mortgage rates are leading buyers to more aggressive shopping to lock a rate in, as January was the first time since March 2020 that mortgage rates rose about 3.5%. The end of January and beginning of February saw prices rise 16% year over year, while new listings fell 8%, suggesting this buying frenzy isn’t ending anytime soon.

In Philadelphia, the only Pennsylvania city data was provided for, 72.9% of homes received multiple offers in January, up from 56% in December and from 64.7% from January 2021.