If you thought January was an extremely competitive month for housing you weren’t alone and you weren’t wrong, according to the latest data from Redfin…(Redfin)
- 70% of home offers written by Redfin agents faced bidding wars in January.
- This is up from 67.7% in December and 61% in January 2021.
Spokane, WA had the highest bidding-war rate with 83.3% of offers written by Redfin agents facing competition in January…
- Sacramento, CA came in number two with a bidding-war rate of 80.4% followed by Seattle at 79.7%.
Unfortunately, this hyper-competitive market did not lead to more home sales, according to Zonda Economics’ latest New Home Pending Sales Index…(Zonda Economics)
- M-O-M: The New Home Pending Sales Index was down 4.8% month-over-month to 149.8 in January.
- Y-O-Y: Pending home sales were down 14.0% when compared to January 2021.
NOTE: The PSI is up 22.5% compared to two years ago.
Ali Wolf, chief economist at Zonda Economics, said 2022 can be summed in two words…
- “The housing market in 2022 can be defined by two words: enthusiasm and panic. Buyers are trying to rush into this tight market before rates raise much higher and builders are in a race against time to help meet the interest.”