During June, a mere 12 percent of offers on homes submitted by Redfin agents faced a bidding war, down from 52 percent one year ago, according to the real estate brokerage.
In San Francisco, the most competitive metropolitan area in June, 28 percent of offers received competitive bids, down from 65 percent one year earlier. The next most competitive markets in June were San Diego (19 percent) and Boston (17 percent), Redfin found.
“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,” Redfin San Francisco listing agent Chris Jurach said in a release. “Once you get above around $1.25 million, buyers are being more selective, leading to fewer bidding wars in those upper price ranges.”
South of San Francisco in San Jose, Calif., only 6 percent of offers faced competition in June, down from 74 percent a year earlier.
“San Jose buyers have seen homes for sale staying on the market longer, and more sellers dropping prices than either of the last two years,” Redfin San Jose agent Stella Phua said. “When they see the market slowing down, they prefer to take a ‘wait-and-see’ approach. The only homes that are getting multiple offers now are the ones in the best locations, great condition, and priced lower than similar homes in the neighborhood.”
According to the report, the least competitive markets in June were Miami, Dallas and San Jose.
“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,” Redfin Chief Economist Daryl Fairweather said. “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.”