Redfin: 60% of Offers Written by Redfin Agents Faced Bidding Wars in Oct 2116002
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|Redfin Media Release
Redfin Reports 60% of Offers Written by Redfin Agents Faced Bidding Wars in October 2021
Housing-market competition is no longer slowing as homebuyer demand shows signs of heating back up
SEATTLE, Nov. 24, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — In October, 60.3% of home offers written by Redfin agents faced competition, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. While this is nearly the same rate Redfin reported in September (60.4%), it is still down from a pandemic peak of 74.5% in April.
The bidding-war rate has fallen from its peak in recent months amid a typical seasonal cooling in the housing market, but 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 this month—a sign that bidding wars could start to tick up again," Fairweather said. "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 and Sacramento Have the Highest Bidding-War Rates
Salt Lake City had the highest bidding-war rate of the 42 U.S. metropolitan areas in this analysis, with 79.5% of offers written by Redfin agents facing competition in October. Next came Sacramento, CA at 77.1% and Indianapolis at 74.1%. San Diego and San Francisco/San Jose rounded out the top five, with bidding-war rates of 72.1% and 69.5%, respectively.
"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," said San Diego Redfin agent Jodie Lee. "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."
Lee continued: "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."
To view the full report, including charts and methodology, please visit:
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
Source: Redfin via PR Newswire
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