A new report out from Redfin shows that despite general economic uncertainty stemming from the coronavirus pandemic and widespread social unrest, the number of bidding wars in the U.S. actually went up last month thanks to a housing supply shortage.

The report, released Monday, shows that in May 49.4 percent of the offers may via Redfin faced competition. That number is up from 43.9 percent of offers that faced competition during April. Boston ended up as the most competitive U.S. market in May, with 64.1 percent of Redfin offers facing competition compared to 56 percent in April.

Boston-based Redfin agent Delince Louis is quoted in the report saying the market in his area is “seeing a frenzy.”

Dallas, Washington, D.C., Salt Lake City, and Denver rounded out the top five most competitive markets. Redfin’s analysis looked at a total of 24 metro areas and found that there were 11 in which the majority of the company’s offers faced competition.

The report explains that a shortage of homes for sale is driving up the number of bidding wars, adding that “the number of listings on the market in May was 18.9 percent lower than the same period last year.”

Taylor Marr

Taylor Marr, Redfin’s lead economist, added in the report that bidding wars also increased because people looking for housing began to feel more confident as stay-at-home orders lifted and people got “more clarity around where the economy was headed.”

Redfin’s report is in keeping with other recent findings that suggest the housing market is making it through the pandemic without seeing major dips in prices or demand. For example, earlier this month CoreLogic found that prices continued to see significant year-over-year increases in April despite the pandemic. And the National Association of Realtors similarly revealed in May that prices during the first quarter of 2020 rose across the U.S.

In the case of this latest report, Redfin found that single-family homes were the most likely to see bidding wars. Louis, the agent in Boston, attributed the appeal of houses, as opposed to condos, to a desire on the part of consumers for more privacy.

However, despite these findings the future remains uncertain and the market is not necessarily out of the woods.

“But with coronavirus cases back on the rise in many states,” Marr added, “only time will tell whether that confidence is sustainable.”

Email Jim Dalrymple II

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×