Buyers: You May Face Less Competition as Bidding Wars Ease

By Articles, Buying, Keeping Current Articles August 31, 2022
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One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars. With so many buyers looking to purchase a home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic – and it drove home prices up. If you tried to buy a house over the past two years, you probably experienced this firsthand and may have been outbid on several homes along the way.

But here’s the news you’ve been waiting for: data shows clear signs bidding wars are easing this year.

According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined considerably over the past few months (see graph below):

Buyers: You May Face Less Competition as Bidding Wars Ease | MyKCM

The graph shows homes were seeing a high of around five offers earlier this year. But the latest data shows that average was down to just shy of three offers per recently sold home. This shift is happening largely because rising mortgage rates moderated buyer demand and slowed home sales, resulting in a growing supply of homes on the market. Essentially, more choices for buyers.

What This Means for You

If you put your home search on pause because you were outbid last year or because you didn’t want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a sellers’ market, an uptick in inventory gives you a window of opportunity to jump back in. You may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.

Bottom Line

If you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your home search. Today, bidding wars are easing and that may mean less competition for you as a buyer. If you’re serious about buying a home or making a move, let’s connect to get started today.

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About the Author
Richard Wamsat
Richard Wamsat
Richard Wamsat is a Broker Associate and REALTOR with Coldwell Banker Realty in Irvine, California (CalDRE #01345167). Since 2002, Richard has represented clients throughout California in all price ranges, from first time homebuyers purchasing their first condo to seasoned investors buying and selling higher end properties. His current focus is on helping buyers and sellers in Orange County.

Richard bought his first home at nineteen and has worked in both Northern and Southern California markets, including the difficult years of the Great Recession when he negotiated with banks to help homeowners avoid foreclosure or get relief from underwater mortgages. That experience, combined with hundreds of successful closings since, gives his clients a practical understanding of how deals really get done in changing markets.

Committed to professional negotiation, Richard earned the Master Certified Negotiation Expert (MCNE) designation from the Real Estate Negotiation Institute, a member of the Harvard Program on Negotiation, along with additional credentials such as CNE, AHWD, CDPE, and SFR. Fewer than one percent of agents nationwide have achieved the MCNE designation, and Richard uses that training to structure offers, counteroffers, and terms that protect his clients’ interests without overpromising or relying on gimmicks.

Richard lives in Irvine with his wife, Brandy, and their fluffy white dog, Murphy. When you hire him, you get a calm, data driven advisor who takes the time to explain your options, walk you through the numbers, and help you make confident decisions about buying or selling a home in Orange County.