Competition for homes on the market is lessening, which could provide an opening for home buyers who have been losing out amid this year’s bidding wars.
In August, about 59% of offers on homes written by Redfin agents faced competition, which is a record low for this year and the lowest level since 2020, according to a Redfin analysis. That’s down from a peak of 74% in April.
There have been additional recent signs that the housing market is cooling somewhat: Contract signings in July dropped, mortgage applications for home purchases—a gauge for future home buying—have been easing, and more sellers are making price adjustments.
Still, sellers continue to have the upper hand. The number of listings on the market is increasing but remains low compared with high buyer demand. Fifty percent of homes sold above their list price during the four weeks ending Sept. 5, according to Redfin. Eighty-nine percent of homes sold in July were on the market for less than a month, accor