Competition is down but housing market still red hot

Competition is down but housing market still red hot

Competition is down but housing market still red hot
According to a new report by online real estate site Redfin, the housing market cooled slightly in June as measured by competition among buyers. While competing offers may have declined slightly last month, this cooling only turned down the temperature by a couple of degrees in a hot market.

Sixty-five percent of home offers written by Redfin agents in June faced competition. This is down from 72.1 percent in May and up from the 56.8 percent recorded in June 2020.

Buyer fatigue is partly responsible for the decline but a small increase in the number of homes for sale is also helping lessen the rate of bidding wars. Redfin reports that for-sale houses are up four percent over last year and three percent from 2019. This is the first time that new listings have surpassed 2019 levels since the beginning of the year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article