Real Estate Marketing & Beyond
Yet more evidence has emerged that now is a great time to buy, with Redfin saying that bidding wars, in which multiple buyers compete to buy a home, are at their lowest point in 10 years.
Redfin says in its latest report that just 10% of offers on homes sold via its real estate agents this year faced competition from other bidders, down from 39% a year earlier.
But the respite for buyers is likely to be short-lived, as Redfin says that a combination of low mortgage rates and low housing inventory across the country could lead to increased competition next year. As such, bidding wars will likely ramp up again.
“Right now, there are fewer homes for sale than we usually see this time of year, and sales are picking up thanks in part to low mortgage interest rates,” said Redfin’s chief economist Daryl Fairweather. “All of the pieces are in place for bidding wars to become more common and for the housing market to shift back toward the seller’s favor next year. Now may be the last chance in the foreseeable future for buyers to win a home without facing a bidding war.”
Redfin’s prediction is in line with a forecast from Realtor.com last summer, which also warns that buyers are likely to face increased competition on a more limited selection of homes for sale next year.
Some cities are seeing intense competition from buyers even now, Redfin said. For example, 34.8% of all offers on homes in the San Francisco area were subject to bidding wars. Other cities, including San Jose (20.5%), San Diego (15.6%), and Los Angeles (13.7%) are also seeing more bidding wars than the average.
