In October, 60.3 percent of home offers written by Redfin agents faced competition, according to a recent Redfin report. While that’s nearly the same rate reported in September (60.4 percent), it is down from a pandemic peak of 74.5 percent in April.
The bidding-war rate has begun to plateau as a second wind of homebuyer demand has fueled competition, according to Redfin Chief Economist Daryl Fairweather.
“While the housing market slowed in October, the latest homebuying demand data indicates it may be heating back up — a sign that bidding wars could start to tick up again,” Fairweather said in a release. “Homebuyers who dropped out of the housing market in the spring have returned under the assumption there will be less competition. They may be surprised to discover that bidding wars are still common because so many house hunters are looking to take advantage of low mortgage rates before they rise.”
Salt Lake City had the highest bidding-war rate of the metros Redfin analyzed, with 79.5 percent of offers facing competition in October. Next came Sacramento, Calif., at 77.1 percent, Indianapolis at 74.1 percent, San Diego at 72.1 percent and San Francisco/San Jose at 69.5 percent.
“There’s been a noticeable uptick in bidding wars during the first couple weeks of November, and we’re seeing a lot more buyers than we typically would at this time of year,” San Diego Redfin agent Jodie Lee said. “Many buyers hit pause on making offers after constantly getting outbid during the spring homebuying season, but now they’re ready to get back in the game before mortgage rates increase.
“There’s still a housing shortage, which means some homes continue to receive as many as 22 offers and go for $100,000-$150,000 over list price. The best thing buyers can do is act quickly, have a fully underwritten preapproval from a good lender, and consider waiving contingencies.”