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Bye bye bidding wars? Slowing market brings less competition for buyers

But dropping mortgage rates could reverse the trend

In the first three weeks of March, about 16 percent of buyer offers faced a bidding war (Credit: iStock)
In the first three weeks of March, about 16 percent of buyer offers faced a bidding war (Credit: iStock)

So long are the days of competitive buyers and numerous bids — at least for now.

A new report finds that homebuyers today are facing much less competition from other prospective buyers than they did a year ago, another sign indicating a slowdown.

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In the first three weeks of March, about 16 percent of buyer offers faced a bidding war, according to a new report from Redfin. That’s down from 61 percent last year, CNBC reported.

Homes are also taking longer to sell. Redfin, which operates in 85 markets, found that homes are staying on the market on average two days longer than during February 2018. That is the largest annual increase since January 2015, and first annual increase in February since 2011.

But dropping mortgage rates of late could draw out more buyers, which may in turn lead to an uptick in bidding wars as the housing supply remains tight. [CNBC] – Natalie Hoberman

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