Home buyers on the west coast are less likely to face a bidding war than in previous years, according to a new study from the online real estate brokerage Redfin. What’s more, they also have a better chance of winning the first home they make an offer on than buyers in other parts of the country.
The Redfin reports notes that buyers everywhere are less likely to face a bidding war. Some 56% of buyers who bought a home in the first quarter managed to close on the first home they bid for, which is the highest “first offer success rate” in over three years.
“Last year home buyers had to pull out all the stops to land a home in competitive West Coast markets, but this year there are more homes for sale and the odds are more in the buyer’s favor,” said Daryl Fairweather, Redfin’s chief economist. “In San Jose, the market has dramatically slowed from a year ago, and it’s actually now easier to get an offer accepted in San Jose than in many other parts of the country.”
For example, in the San Jose metro area, 63 percent of buyers who purchased a home in the first quarter of this year successfully purchased the first home they made an offer on. A year ago, only 25 percent of San Jose home buyers were successful with their first offers.
In San Diego, more than half—53 percent—of buyers last quarter closed on the home they made their first offer on, up from 38 percent a year earlier.