According to a new report from Redfin, 53.7% of Redfin offers faced bidding wars in June, up from a revised rate of 51.8% in May and 44.4% in April.
“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” says Redfin economist Taylor Marr. “It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small number of single-family homes on the market as they realize they need more space for their families.”
The average mortgage rate fell to 3.03% for the week ending July 9 – the lowest 30-year fixed-rate number since Freddie Mac began tracking the statistic in 1971. The number of homes for sale nationwide in June was down 21.3% from the year before, bringing inventory down to its lowest level since at least 2012 on a seasonally adjusted basis. The number of new listings was down 12% year over year.
Single-family homes were most likely to be part of a bidding war in June, with 56.2% of Redfin offers facing competition, followed closely by townhouses (54.2%). By contrast, 40.5% of condos faced bidding wars.
Boston, San Diego and Salt Lake City are the most competitive markets, the company says. Boston had the highest bidding-war rate of all the metros (72.4%) included in the analysis in June.
Miami, where 32.4% of offers faced competition, had the lowest bidding-war rate. It’s followed by Chicago (37.8%) and Las Vegas (39.2%).
For the full report, click here.