A mere 15 percent of offers written by Redfin agents in April faced a bidding war, down from 60 percent of offers one year ago, the company announced.
“Right now could be as good as it gets for buyers who want to avoid getting involved in bidding wars and price escalations,” Redfin Chief Economist Daryl Fairweather said in a release. “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,” Fairweather added.
Redfin said San Francisco was the most competitive metropolitan area in April, with 22 percent of offers facing competition, down from 75 percent a year earlier, but up from the January low of 17 percent.
Since January, San Francisco and Phoenix have seen the biggest increases in the rate of bidding wars, up 5 points in both areas.
“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,” Fairweather said.
“Although the market is far less competitive than it has been for the past seven years, Bay Area buyers should still be prepared for a bidding war on the most desirable homes.”
Redfin said Phoenix (20 percent) and San Diego (19 percent) were the most competitive housing markets after San Francisco in April. The least competitive housing markets in April were Miami (3 percent); Raleigh, N.C. (5 percent); Dallas (7 percent); Atlanta (7 percent); and Houston (7 percent).