As inventory drops to record lows during this low-mortgage-rate-induced buying frenzy, homebuyers are pushing themselves to the limit to secure a home. According to Redfin’s latest market update published on Wednesday, 64 percent of Redfin buyers in March were in a bidding war — up from 62.1 percent the previous month.
“In today’s market, buyers need to pull out every single stop they possibly can,” Las Vegas-based Redfin agent Lori Garlick said in the report. “Competition is escalating in part because it’s almost summer and families want to lock down homes before the next school year starts and their kids have to head back to the classroom. This typical spring homebuying behavior is making a hot housing market even hotter.”
Forty-six percent of homes listed on Redfin sold in one week, with single-family homes garnering the most bids (66.5 percent) next to townhomes (65.6 percent) and condominiums (51.1 percent). Although single-family homes are buyers’ prime choice, Redfin said townhomes are quickly catching up as the bidding-war gap between the two housing types decreased from 5.2 percent in February to 0.9 percent in March.
“Townhouses—especially ones with outdoor space—are starting to see more competition because it has become so difficult for buyers to win single-family homes,” Seattle-based Redfin agent Heather Stovall added. “My clients recently accepted an $890,000 offer on their Fremont townhouse after listing it at $795,000. The property, which has a really nice deck, a built-in outdoor kitchen and views of Mount Rainier, received a total of eight bids.”
Reflecting “the great reshuffling” from popular coastal hubs to more affordable secondary cities, buyers in Salt Lake City (87.1 percent), Pittsburgh (82 percent), Boise (81.5 percent), Virginia Beach (80.9 percent) and Las Vegas (78.1 percent) were the most likely to enter a bidding war.
Luxury homes priced between $800K and $1 million garnered the most bids (69.4 percent) followed by homes priced between $1 million and $1.5 million (68.6 percent). Homebuyers at the lower end of the market didn’t get a break either, with 59.1 percent of homes listed at $200,000 or below receiving multiple bids.