US Buyers facing less competition as bidding wars hit 8-year low

by Steve Randall14 Dec 2018

Homebuyers south of the border faced less competition in November with fewer bidding wars in many markets.

However, a report from real estate brokerage Redfin shows that some fast-cooling coastal markets have zip codes where bidding wars are still a factor for potential buyers.

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Of the offers written by Redfin agents on behalf of customers, 32% faced at least one competing bid in November, down from 45% a year earlier. It’s the lowest share since the firm began tracking the data in 2011.

Between September and November, the zip codes where agents reported that at least 85% of buyers’ offers faced competition were 94602 (Oakmore, Glenview and Lincoln Highlands) in Oakland, California, 20009 (U Street Corridor, Adams Morgan, Columbia Heights and Shaw) in Washington, D.C., and 92870 (Placentia) in Orange County, California.

Boston was among the markets were at least 70% of buyers’ offers faced competition.

"There aren't many homes for sale in and around the city of Boston right now," said Redfin agent Luke Welling. "Bidding wars are still the norm in Arlington Heights, Malden, and the Somerville and Cambridge areas. Proximity to Boston and the local universities, coupled with highly rated schools in the surrounding towns make these neighborhoods sought-after destinations for many homebuyers. Buyers still need to make offers well over asking price to win a home."

Philadelphia was the only metro area where buyers faced significantly more competition in November 2018 than in November 2017. Philadelphia is one of the markets where inventory is shrinking and homes are selling faster and for more money.

Here's a list of bidding war rates for each of the largest metro areas Redfin agents serve:

Metro Area

Share of Redfin Offers that
Faced Competition
(Nov. 2018)

Share of Redfin Offers that
Faced Competition
(Nov. 2017)

Sacramento, CA

45.5%

51.4%

San Francisco, CA

45.3%

75.1%

Los Angeles, CA

38.3%

68.0%

San Diego, CA

37.7%

57.5%

Boston, MA

37.3%

44.0%

Washington, D.C.

37.0%

37.6%

Philadelphia, PA

36.5%

30.0%

Portland, OR

33.7%

33.3%

Denver, CO

27.2%

42.2%

Dallas, TX

26.2%

35.8%

Chicago, IL

25.2%

28.0%

Phoenix, AZ

24.7%

25.4%

Seattle, WA

24.5%

58.2%

Atlanta, GA

23.1%

23.7%

Houston, TX

21.1%

29.2%

Austin, TX

20.6%

29.8%

Raleigh, NC

20.0%

40.0%

Miami, FL

19.4%

31.4%

 


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