(Credit: Redfin)
Bidding wars for homes have dropped to their lowest level in eight years, according to Redfin, but competition still remains strong in the nation’s hottest markets.
An estimated 32 percent of offers written by Redfin agents on behalf of the consumer faced one or more competing bids, down from 45 percent a year ago, marking an all-time low since Redfin began tracking data on home competition.
In hot markets like Boston, according to Redfin agent Luke Welling, bidding wars are still prevalent.
“There aren’t many homes for sale in and around the city of Boston right now,” Welling said. “Bidding wars are still the norm in Arlington Heights, Malden, and the Somerville and Cambridge areas.”
“Proximity to Boston and the local universities, coupled with highly rated schools in the surrounding towns make these neighborhoods sought-after destinations for many homebuyers,” Welling added. “Buyers still need to make offers well over asking price to win a home.”
Buyers in the San Francisco Bay Area and Washington D.C., are especially hot markets, where bidding wars are typical. In a number of zip codes, more than 85 percent of buyers have to contend with one or more competing bids, and in other zip codes in the same metro areas, 70 percent of buyers face one or more competing bid – more than double the national average.
Seattle has seen the biggest cool-down in competing offers, with only one zip code where more than half of the Redfin offers faced competition in the past three months and only 20 percent faced competing offers overall. During the spring selling season, more than 75 percent of offers faced competition in the city.
Philadelphia, conversely, has seen competition heat up more than any other metro area. Thirty-six percent of buyers faced competition in November 2018, compared to just 30 percent a year ago.
(Credit: Redfin)