A shortage of homes on the market and pent-up demand continue to drive bidding wars for homes across the country even in the face of a resurgent coronavirus pandemic, according to a report released by Redfin.
In June, 53.7 percent of Redfin offers faced competing offers – up from 51.8 percent in May and 44.4 percent in April.
“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” Redfin economist Taylor Marr said. “It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small number of single-family homes on the market as they realize they need more space for their families.”
The number of homes for sale nationwide in June was down 21.3 percent from the year before, driving inventory to its lowest level since 2012.
The Redfin report found:
- Single-family homes were most likely to be part of a bidding war in June, with 56.2 percent of Redfin offers facing competition.
- 54.2 percent of townhouses saw bidding wars.
- 40.5 percent of condos were the the subject of bidding wars.
Here is how it broke down by market:
|Metro area||Redfin offers with bidding wars – June||Redfin offers with bidding wars – May|
|San Diego, CA||65.7%||53.2%|
|Salt Lake City, UT||63.8%||60.7%|
|Los Angeles, CA||58.1%||56.5%|
|San Francisco / San Jose, CA||58.0%||55.8%|
|New York, NY||49.8%||49.0%|
|Las Vegas, NV||39.2%||36.2%|