Key Highlights

  • 54.5% of offers nationwide faced bidding wars in August
  • August was fourth month in a row that more than 50% of offers faced bidding wars
  • Average 30-year fixed interest rate was 2.91% week ending August 27, a sales driver

The housing market is hot, hot, hot across the country. For the fourth consecutive month, more than 50% of buyers faced bidding wars in hopes of getting “the” house they wanted.

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Take a look at the markets where buyers found the most competition in August:

Metro Area                         Share of Offers Facing Competition

San Francisco/San Jose              65.2%

Salt Lake City UT                       65.2%

San Diego CA                            64.5%

Washington DC                          63.5%

Seattle WA                                62.2%

Minneapolis MN                          61.5%

Boston MA                                 60.8%

Philadelphia PA                          59.1%

Austin TX                                  58.2%

Sacramento CA                          57.8%

Phoenix AZ                                56.5%

Portland OR                               56.3%

Los Angeles                               53.4%

Tampa FL/Detroit MI                   50%

Metro areas where 40-49% of buyers faced bidding wars included Denver, Atlanta, Raleigh, New York, Houston, Dallas, and Chicago.

Daryl Fairweather, chief economist with Redfin, said, “Low mortgage rates (2.91% the week ending August 27) are motivating homebuyers who are thinking of moving to go through with it. I expect competition to continue picking up in more affordable parts of the country.”

Single-family homes spurred 56.6% of buyers to face competitive bidding while 54.7% of buyers wanting town homes faced competition. Condominiums drove 41.3% of buyers to bidding wars.

Houses priced between $600,000 – $800,000 saw multiple offers in August with 58.4% of those buyers facing bidding wars. 58.2% of buyers for homes costing $1M – $1.5M encountered bidding wars while 44.7% of buyers of homes priced +$1.5M faced competitive bidding.

According to agents with Redfin, homes with yards, a separate office and a space for children to do their schoolwork could generate 15 to 20 offers.

 

Thanks to Redfin.

Also read: 65% Now Ready to Attend Open Houses Without Hesitations, Meet Your Clients Needs During and Post Pandemic, Housing Market Continues to Break Records