Home bidding wars are beginning to ease in the Seattle area.
The proportion of Redfin-listed homes that faced competition in June was 41%, up from 61% in May and almost 72% in June 2021.
Despite this, home prices continued to rise in June. The national median home price rose 13.4% in June from a year earlier.
Here in the Seattle area, Redfin says the average selling price of a home is up 11.2% “year over year.”
The Seattle-based real estate agent says high inflation and rising interest rates are taking a “bite” out of homebuyers’ budgets.
“This is definitely unprecedented. This is the fastest mortgage rates have risen. And it was at a time when demand in the housing market was incredibly hot. So I think it shows how important mortgage rates are to the competitiveness of the housing market. And it’s not surprising, but it’s dramatic,” Redfin chief economist Daryl Fairweather told KIRO Newsradio.
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Tampa, Fla. had the lowest “bid war rate” in June at 29%. On the other end of the spectrum, Providence, Road Island and Boston, Massachusetts both recorded rates above 70%.