Bidding wars continue to decline

Green Escrow | Real Estate News

According to a new report from Redfin, bidding wars declined for the fifth straight month in September to 58.9 percent of offers. This was done from August’s rate of 60.8 percent. The peak for bidding wars was in April 2021 at 74.3 percent.

Of course, 58.9 percent means that over half of all offers faced bidding wars. Analysts also pointed out that September generally brings a seasonal decline as schools re-open and the weather cools.

Bidding wars accelerate

Green Escrow | Real Estate News

Over 77 percent of all bids in the Bay Area face competition according to a new survey by Redfin. This is third in the U.S, behind only Salt Lake City (90.2 percent) and San Diego (78.9 percent). Most of the competition is on higher-priced homes.

Analysts say that historically low mortgage rates coupled with low inventory are driving the bidding wars. The number of homes for sale in the U.S. was down 43 percent from January 2020.

Despite the bidding wars, demand for houses remains strong.

Bay Area housing: competitive but fewer bidding wars

Green Escrow | Real Estate Market News

While Bay Area housing remains very competitive, bidding wars have declined sharply. July, 2019 saw 13.3 percent of housing sales in the San Jose area with multiple bis compared to 80 percent a year earlier. In the san Francisco area (including Oakland and Hayward) 35 percent of offers had bidding wards compared to 72.4 percent the previous year. Nationally, bidding wars accounted for 11 percent of sales, the lowest rate since 2011.

Analysts believe that uncertainty in the stock market along with a fear of overpaying is reducing the sense of urgency to make an offer.

San Francisco remains the most competitive market in the country and bidding wars still occur, particularly if the property is reasonably priced to begin with.

Bay Area Number 1 in Bidding Wars

Green Escrow | Real Estate

A new study by Redfin reports that the fiercest bidding on homes continues to take place in the Bay Area with the top 3 in February all in the region. San Jose was number 1 with 63 percent of homes selling above list followed by San Francisco with 62 percent and 59.1 percent in Oakland.

According to analysts, affordable housing is in short supply throughout the country but particularly in the Bay Area. The competition for these homes is fierce and many first-time homebuyers must try to out-bid other eager buyers.

Not surprisingly, San Jose, Oakland, and San Francisco were all in the top 5 in the nation’s fastest moving markets although Seattle ranked number one with nearly half of all homes sold within 12 days on the market.