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
