How many home offers face bidding wars?

Three in five home offers faced bidding wars in December 2021, according to new figures from Redfin.

Data revealed that 59.6% of home offers written by Redfin agents across the US faced bidding wars in December 2021 – the lowest share in 12 months and down from a revised rate of 61.3% in November, but up from 54% in December 2020.

Salt Lake City in Utah had the highest bidding-war rate of the 37 US metropolitan areas in Redfin’s analysis, with 74% of offers written by Redfin agents facing competition in December. This was followed by Tucson, Ariz. at 73.1%, San Diego, Calif. at 71.1%, Virginia Beach, Va. at 70.6% and Seattle, Wash. at 70%.

Redfin data also revealed that offers on homes in the upper end of the market faced bidding wars more often in December, with nearly two-thirds (64.6%) of offers for homes priced between $800,000 and $1 million experiencing bidding last month, the highest share of any price bucket. This was followed by homes in the $1 million to $1.5 million range (62%), and by homes priced over $1.5 million (61.7%).

“Competition has dipped in recent months partly because the housing market typically slows in the winter, with many buyers and sellers taking a break during the holidays,” Redfin said in its report. “But while the bidding-war rate has fallen from its pandemic peak of 74.6% in April 2021, the housing market remains quite competitive as house hunters grapple with a record shortage of homes for sale.”