Bidding wars erupt as 2024 kicks off, with some listings seeing over 30 offers

Would-be homebuyers are once again coming out of hibernation, this time prepared to strike a deal before competition heats up.

The volume of applications for a mortgage increased 9.9% from one week earlier on a seasonally adjusted basis for the week ending Jan. 10, according to the Mortgage Bankers Association (MBA). Some of that activity was driven by purchase applications, which increased 6% from the previous week, as buyers capitalized on the year-end decline in rates and a small boost in inventory levels.

For rate-sensitive buyers who have been waiting on the sidelines, these first few weeks of the year could offer a window to purchase, experts said. Still, any relief in affordability could be short-lived.

Bidding wars are already erupting in some areas of the US, which could drive up home prices among the few attractive listings. Additionally, new economic data this week could sway the Federal Reserve to postpone its planned rate cuts — keeping rates higher for longer.

“Prices here are all over the board. If your house is updated with the most recent home trends, you’re going to get offers,” St. Louis-based Stayce Mayfield, a Redfin premier agent, told Yahoo Finance. “We’re still getting bidding wars with anywhere from 20-30 offers — though it still depends on the location and condition.”

Mayfield added, “Some of our buyers agents are still experiencing multiple offers and struggling to get their clients in a home.”

Read more: Mortgage rates below 7% — is this a good time to buy a house?

Where bidding wars are erupting

As the new year kicked off, more buyers trickled into the housing market.

According to Redfin, mortgage-purchase applications were up 3% compared to a month ago during the first week of January. Redfin agents also reported requests for tours were up 5% from this time in December, and there were 9% more new listings on the market in the four weeks ending Jan. 7 compared to a year ago.

Story continues

“Right now, I think the majority of our agents all over the country expected to have a busy first few weeks in January given consults,” Redfin spokesperson Allison Braun told Yahoo Finance. “However, given the storms that are pushing through the country [that’s] really leaving potential homebuyers at home and on the sidelines.”

By contrast, areas with good weather saw an uptick in activity. One Redfin agent in Phoenix noted an unusual uptick in activity this week.

“Telling my buyers to get in the market now, interest rates are lower and competition is low,” said Phoenix premier agent Heather Mahmood-Corley. “I imagine competition will really pick up in March and prices will start to soar. March really is a hot month here, the weather starts to get better.”

The uptick in competition, though, could erode that newfound affordability. According to Redfin,…