Bidding wars are rare in many markets compared to a year ago
There was little competition among homebuyers in June according to a survey by Redfin.
Just 12% of offers written by its agents nationally faced a bidding war compared to 52% in June 2018 and in San Jose the drop was even more dramatic with just 6% of offers written by Redfin agents on behalf of their home-buying customers faced a bidding war last month, down from 74% a year ago.
"With low mortgage interest rates luring more homebuyers off the sidelines as supply dwindles, we're likely to see competition pick back up, especially for the most affordable homes and neighborhoods, where inventory is limited and buyers are most rate-sensitive," said Redfin chief economist Daryl Fairweather. "At Redfin, we've been seeing increases in the numbers of homebuyers starting their searches and going on home tours following the latest mortgage rate drops."
In San Francisco 28% faced competition, down from 65%, while San Diego (19%) and Boston (17%) were the next-most competitive metros.
"Bidding wars are still somewhat common in San Francisco, mostly at price points around $1 million, which is relatively inexpensive for the city, but enough to buy a modest house in a number of neighborhoods," said Redfin San Francisco listing agent Chris Jurach. "Once you get above around $1.25 million, buyers are being more selective, leading to fewer bidding wars in those upper price ranges."
