BrokerPulse

RealTrends Q32021 BrokerPulse sees brokers still optimistic about the market, wary of competition and wondering when inventory will rise.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Knock.com’s Sean Black on the transaction revolution

Real estate is on its third revolution, from the digital revolution of the early 2000s to the information revolution kicked off by Trulia and Zillow to today's transaction revolution.

Newsletter

The RealTrends BrokerSource and HousingWire OpenHouse newsletters deliver twice weekly information on trends, strategies, analysis, people, and news shaping the real estate industry.

Three Housing Reports Present a Mixed Bag: Fewer Bidding Wars, More Inventory

Three Housing Reports Present a Mixed Bag: Fewer Bidding Wars, More Inventory

Both reports show conditions are more favorable to buyers. Realestate.com issued a report specifying that condition are particularly good for first-time buyers seeking starter homes.

While Seattle-based Redfin issued a recent report noting that bidding wars are on the decline, Pittsburgh-based West Penn Multi-List Inc. issued a report that found sales volume and home listings have risen compared to last year. Meanwhile, RealEstate.com posted its findings indicating that entry-level home values rose at the slowest pace since 2016, a boon for first-time homebuyers.

According to Redfin, just 16 percent of offers written by its agents on behalf of homebuyers in the first three weeks of March faced a bidding war, which is down from 61 percent for the first three weeks of March 2018 but a slow uptick from the record low of 12 percent in December.

“If the rate of bidding wars begins to increase in a meaningful way this spring, it will be one of the earliest signs that the market is heating back up, since buyers making offers is the earliest stage of the homebuying process,” Redfin concludes in a release announcing its findings.

Redfin also found that the typical home that sold in February spent a median of 59 days on market, up 2 days from a year ago. “This is the largest year-over-year increase in time on market since January 2015, and it’s the first February to post an annual increase in days on market climb since at least 2011,” Redfin said.

The most competitive markets in March were San FranciscoBostonSan Diego and Portland, Ore., where  about one in five offers faced competition. Each of these markets saw over 65 percent of offers face competition during the same period a year earlier.

“This year even when there is competition among buyers for the same house, prices aren’t bid up as high as they were last summer,” said San Diego Redfin agent Katie Gilbert. “Overall it’s not as chaotic as last year, but buyers still need to move quickly to win homes in the popular areas.”

One market not listed in Redfin’s report is Pittsburgh, where West Penn Multi-List Inc. is headquartered. It issued a report comparing January-February 2019 with the same time period in 2018:

  • Closed sales are up 4.57 percent (3,275 units in 2019 versus 3,132 in 2018);
  • Closed sales volume is up 3.70 percent ($583,539,500 in 2019 versus $562,691,988 in 2018);
  • Average sale price is down 0.82 percent ($178,180 in 2019 versus $179,659 in 2018).

“The number of new listings entering the marketplace is up from last year, and the average sale price of homes has not increased,” said George Hackett, current president of West Penn Multi-List. “This makes for a favorable environment for potential homebuyers.”

The table below indicates the bidding war rates for the largest metros Redfin agents serve.

Rank

Metro Area

Share of
Redfin Offers
that Faced
Competition
(Mar. 1-21
2019)

Share of
Redfin Offers
that Faced
Competition
(Mar. 1-21
2018)

Share of
Redfin Offers
that Faced
Competition
(Feb. 2018)

1

San Francisco, CA

22%

86%

21%

2

Boston, MA

22%

82%

21%

3

San Diego, CA

20%

69%

21%

4

Portland, OR

20%

66%

20%

5

Denver, CO

19%

70%

19%

6

Philadelphia, PA

17%

47%

17%

7

Los Angeles, CA

17%

70%

15%

8

Seattle, WA

17%

72%

15%

9

Austin, TX

16%

53%

14%

10

Washington, D.C.

14%

57%

14%

11

Atlanta, GA

14%

28%

13%

12

Phoenix, AZ

14%

41%

12%

13

Raleigh, NC

11%

61%

12%

14

Chicago, IL

11%

40%

11%

15

Sacramento, CA

10%

59%

9%

16

Houston, TX

9%

26%

4%

17

Dallas, TX

8%

55%

4%

18

Miami, FL

5%

43%

2%

Most Popular Articles

Where is the housing market headed?

Rising incomes, low interest rates and all other factors, including the balance between families looking for housing and the availability of housing, point towards a continuation of the strong housing market of the last 15 to 18 months.

Oct 18, 2021 By

Latest Articles

Abortion, marijuana laws play a role in relocation decisions

People take the politics of a place into consideration when deciding where to move, but other factors including housing affordability and access to jobs and schools take priority, Redfin study shows

Oct 19, 2021 By