More than half of Redfin offers on home purchases faced competing bids in July, according to a new report released by the brokerage.
Redfin reports that 54 percent of offers nationwide had at least one competing bid – down slightly from 56 percent in June. It is the third month in a row that half of Redfin offers experienced bidding wars.
“Bidding wars may slow down if interest rates tick up again, which could happen if we get good news about a coronavirus vaccine or more clarity around the outcome of the upcoming U.S. presidential election,” Redfin chief economist Daryl Fairweather said. “At the same time, we may still be in the early innings of the pandemic migration wave. If coronavirus cases continue to climb, more employers will likely make flexible remote work policies standard procedure, which will drive further migration out of large, expensive cities. As a result, we may see bidding wars gain more traction in suburban areas and small towns.”
Single-family homes were most likely to encounter bidding wars in July, with 56 percent of Redfin offers facing competition, followed by townhouses at 54 percent and condos at 42 percent.
Homes priced between $400,000 and $500,000 were most likely to be met with competition, with 56 percent of offers facing bidding wars.
“If you price your home right and you haven’t Crayola crayoned all over the wall, you’re going to get at least a handful of offers,” Tampa Redfin agent Brian Walsh said.
Here is a look at bidding wars on Redfin properties by market:
|Salt Lake City, UT||75%||67%|
|San Francisco / San |
|San Diego, CA||65%||70%|
|Los Angeles, CA||58%||67%|
|New York, NY||53%||53%|
|Las Vegas, NV||32%||44%|