Bidding Wars Continue to Rage On

For the fourth month in a row, Redfin reports more than half of homes listed on the site ended in a bidding war. Listings which received at least one competing gig in August hit 54.5%, dropping just under 3% from July's rate. Competition remains high in coastal cities such as San Diego and San Jose/San Francisco, but also Salt Lake City. These three most competitive markets saw 65% of Redfin offers facing bidding wars. One Redfin agent located in San Diego says anything under $600,000 has received multiple offers but condominiums are more slow as buyers look for homes with outdoor space.

Nearly 60% of offers faced competing bids in three of the four most popular destinations for Redfin.com users who looked to relocate in July: Sacramento (57.8%), Phoenix (56.5%) and Austin (58.2%).

“The pandemic-driven trend of people moving away from densely packed cities toward more affordable and spacious regions means homes in places like Sacramento and Phoenix are becoming nearly as competitive as the Bay Area,” said Redfin chief economist Daryl Fairweather. “Low mortgage rates are motivating homebuyers who are thinking of moving to go through with it. I expect competition to continue picking up in more affordable parts of the country.”

Interest in comparatively affordable areas with bigger homes also explains why the broader Bay Area is still the most competitive part of the country, even as sellers are dropping prices in the smaller San Francisco metro. 

Read More