SEATTLE, Aug. 7, 2019 /PRNewswire/ -- (NASDAQ: RDFN) — Eleven percent of offers nationwide faced a bidding war in July, down from more than 45 percent a year earlier, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. This is the lowest rate of bidding wars since at least 2011.
The national bidding war rate hasn't surpassed 15 percent since November 2018, after falling steadily from a peak of 59 percent in March 2018.
"Mortgage rates have been mostly flat for the last month, and so has homebuyer competition, which was beginning a fast descent this time last year as mortgage rates were inching toward 5 percent," said Redfin chief economist Daryl Fairweather. "On a local level, it's noteworthy that some of 2018's fiercely competitive markets—San Jose, Seattle, Los Angeles—have seen their bidding war rates plummet the most year over year. Home prices in these expensive markets have also been falling annually. Overall, I expect homebuyer demand to strengthen in the second half of the year as the housing market continues to stabilize, but we may not see a big pop in bidding wars until early next year."
San Francisco was the most competitive market in July, with 35 percent of Redfin offers facing a bidding war. That's down from 72.4 percent a year earlier and up from 28 percent in June, mirroring the seven point increase seen from June to July of last year.
"Although the market isn't as hot as it was last year, this spring and summer have been busy in San Francisco. That's partly because homebuyers are feeling pressure to move quickly due to the high-profile tech IPOs, whether that pressure is real or perceived," said San Francisco Redfin agent Miriam Westberg. "Low interest rates are also a factor in increased homebuyer interest since the beginning of the year. The market has definitely picked up since the winter and it seems like prices and competition are slowly heading back to mid-2018 levels."
San Diego was the second-most competitive market in July, with 21.3 percent of Redfin offers facing competition. It's followed by Boston (16.4%), Los Angeles (16%), Philadelphia (14.3%) and Denver (14%). The bidding war rate in San Jose was just 13.3 percent, and in Seattle, the rate was only 7.8 percent.
Miami was the least competitive market in July, with just 1.3 percent of the offers submitted by Redfin agents facing competition. Miami was followed by Houston (4.8%), New York (6.3%), Dallas (6.6%) and Las Vegas (7.3%).
Share of Redfin offers that faced competition in July 2019
Share of Redfin offers that faced competition in July 2018
Share of Redfin offers that faced competition in June 2019
About Redfin Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including theRedfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.