Chicago home bidding wars drop in July

Prospective Chicago home buyers faced less competition making a deal in July as fewer bidding wars erupted than a month earlier.

A report from Redfin shows that 52.7 percent of offers in Chicago through the brokerage were the subject of competitive bids in July, down from 57.9 percent in the previous month. Bidding wars in Chicago dropped nearly 9 percent in July from June, while in the rest of the U.S. they fell 9.62 percent.

But an armistice still isn’t at hand. Compared with a year earlier, the number of Chicago sales drawing competitive bids jumped 22.3 percent, the brokerage’s report found.

Across the U.S., home sales handled by Redfin in July that sparked competitive bids dropped to 60.1 percent, a six-month low, down from 66.5 percent in the previous month. That’s still higher than a year earlier, when the rate was 57.9 percent.

Historically low mortgage rates and a shortage of homes heated up the housing market. Following the Covid-19 pandemic outbreak, the bidding war rate remained stubbornly above 50 percent since May 2020 before rising above 60% in January.

Fort Collins, Colorado saw the most fierce competition in home buying last month, where 77.3 percent of offers through Redfin faced bidding wars. Orlando, Florida (77 percent), and Nashville Tennessee (74.6 percent) followed.

[Redfin] — Connie Kim