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Mortgage NewsBlog posted On August 09, 2022
If you’ve been waiting for the market to cool, now might be your chance. The red-hot housing market is cooling off, just in time for Fall. Buyers have more options, more likelihood of price cuts, and less likelihood of bidding wars.
A year ago, buyers had a two-in-three chance of facing a bidding war. In June 2022, that number dropped below 50%. This is the first time that buyer competition dropped below 50% since May 2020. In certain areas, the number of bidding wars is even lower.
What is a bidding war?
Bidding wars are when a listing receives two or more offers. Typically, bidding wars drive up the price on a home. Buyers will increase their offer in order to out-bid their competition.
How fewer bidding wars helps you
Additionally, mortgage rates have been trending lower for the past two months. If you’ve been wondering when will home prices drop, take advantage now! We would be happy to talk more, help you get preapproved, and discuss your different options.
Sources: Money, Mortgage News Daily, Wall Street Journal