In April, 15 percent of offers written by Redfin agents on for-sale homes in the U.S. faced competition, posting a "dramatic" 45 percent year-over-year drop.
Redfin chief economist Daryl Fairweather says, “Right now could be as good as it gets for buyers who want to avoid getting involved in bidding wars and price escalations,” adding, “There are many forces at play that may lure buyers back and create more competition in the near future. Interest rates are low compared to last year, price growth has stalled and have even fallen in some West Coast markets, and wages are growing.”
The San Francisco Bay Area was still the most competitive metro in the nation in April, but even there, just 22 percent of offers faced competition, down from 75 percent a year earlier, but up from the January low of 17 percent.
“Multiple billion-dollar San Francisco-based companies are going public this year, so I wouldn’t be surprised to see Bay Area bidding wars come back with a vengeance, pushing prices back up by next year,” said Fairweather.
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