Increasing inventory, rapidly rising home prices and interest rate increases have all contributed to the shift. But, Redfin added, other reasons for the environmental change are buyer fatigue and buyers taking summer vacations.
Winning offers on properties were just 0.6% above asking price on a nationwide basis, compared with 0.9% in June and 1.4% in May.
Some markets remain hotter than others. San Francisco found over 80% of properties had more than one offer, although this was down 110 basis points from June. Furthermore, 78% of winning bids were over the asking price and the average difference between bid and asking price was 5.4%.
Redfin believes going into the fall, there will continued reduction in the number of bidding wars. In 2012, the market heated up in the autumn months.