More than half of all offers submitted by Redfin agents faced competition in June, according to a new survey released Friday by the national real estate brokerage. It’s the second consecutive month where bidding wars were more common than not.
At the same time, mortgage rates continue to plummet. The average 30-year fixed-rate mortgage fell to 3.03 percent, the lowest rate since Freddie Mac began tracking the statistic in 1971.
“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” Redfin economist Taylor Marr. “It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small number of single-family homes on the market as they realize they need more space for their families.”
Nationally, the number of homes for sale was down 21.3 percent year over year, marking the lowest inventory market since 2012. The number of new listings to hit the market was down 12 percent year over year.
Bidding wars are the most common for single-family homes, according to the survey. The survey found 56.2 percent of Redfin offers on single-family homes faced competition, while 54.2 percent of townhomes and 40.5 percent of condos faced bidding wars.
Regionally, Boston saw the highest frequency of bidding wars, with 72.4 percent of offers facing competition, according to the survey. It’s the second straight month where Boston was the country’s most competitive market.
“This is the most competitive real estate market I can remember,” James Gulden, who has been a Boston Redfin agent since 2012, said in a statement. “There are multiple bids on nearly every property I see, whether I’m representing the buyer or the seller.”
“I’m seeing the most competition in the suburbs, where homes are selling in a matter of days,” Gulden added. “Sellers don’t want homes to be on the market any longer than necessary because of COVID-19, so they’re setting offer deadlines, which create a frenzied, competitive atmosphere.”
San Diego, where 65.7 percent of offers faced competition and Salt Lake City, where 63.8 percent of offers faced competition, were the second and third most competitive markets, respectively.
Miami was the least competitive market, according to the survey. Only 32.4 percent of offers in the South Florida coastal city faced competition, according to the survey.