Bidding wars plummet to 15-month low as more buyers back off

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Offers also aren’t coming in as high above the list price as before, according to Nashville Redfin agent Jennifer Bowers.

“I recently listed a three-bedroom, three-bathroom home in a super cute neighborhood for $399,900. It ended up going under contract for $12,000 above the list price with an inspection, whereas three months ago, the buyer probably would have paid $60,000 over asking and waived the inspection,” Bowers said.

Despite the cooldown, townhouses are still hot commodities and are more likely than any other properties to encounter competition. Townhouses have a bidding war rate of 66.6%, followed by single-family homes with 61.6%, multifamily properties with 58.2%, and condos/co-ops with 54.7%.

“Some homebuyers have sought out townhouses because they’ve been priced out of the market for single-family homes. The typical home that went under contract in March was 1,720 square feet, down 1.8% from 1,751 square feet a year earlier,” Redfin said in its report.