Pressure on Home Shoppers Eases as Bidding Wars Hit 2021 Low!

By spring of 2021 we saw approximately 74% of homes listed in Los Angeles and surrounding counties receiving multiple offers. As a result, buyers were forced to bid aggressively against each other for the home. On average we saw an increase in the end sales price of between $50,000 to $100,000 with some markets exceeding $100,000+. Buyers looking to purchase can take a breath now, as competition for listings is lower than it has been at any point this year. Last month the amount of properties receiving multiple offers dropped from approximately 74% to 59%.

The figure represents a massive drop from April, when 74% of new listings resulted in bidding wars, a high point for the past two years. Experts attribute the slow down to buyer price exhaustion. Buyers have begun to leave the market and stating “we will wait, prices are just too high”. The opportunity for agents with clients like this will present itself towards the end 2021 beginning of 2022 where we anticipate prices to be at their lowest point in nearly 2 years. Buyers savvy enough to jump back in the market at that time will most likely be able to negotiate a better deal than we have seen in the past 24 months with the least amount of competition.

Article by: Beverly & Company – Social Media Team