Bidding wars in real estate markets across the nation are becoming increasingly rare, according to a new study by the real estate brokerage Redfin. The company reported that only 11 percent of the properties for which its agents submitted offers in July saw multiple bids, down from 46 percent a year earlier. That’s the lowest share Redfin has seen since 2011.
Higher interest rates last fall helped slow the market, and recession fears may also be keeping people out. Redfin’s study showed that even in competitive markets, bidding wars have decreased dramatically since July 2018 — from 72 to 35 percent in San Francisco, and 62 to 21 percent in San Diego.
While the total number of homes on the market was also down by 3.4 percent from July 2018, the laws of supply and demand have not jump-started competition.
Recently lowered interest rates may prompt buyers to be more assertive and increase competitive bidding, suggested Redfin’s chief economist Daryl Fairweather. “Bidding wars are a bit of a psychological phenomenon,” she said. “If you’re outbid once, you’re more likely to bid on the next one.”
This week’s chart shows a sampling of major metropolitan real estate markets and how the rate of competitive bidding on properties for which Redfin agents submitted offers has declined since last July.
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Bidding Wars
In some of the country’s biggest real estate
markets, the rate of competitive bidding on
properties for which Redfin agents
submitted offers has decreased.
July 2018
July 2019
46%
11%
National
72
35
San Francisco
62
21
San Diego
64
16
Boston
65
16
Los Angeles
37
14
Philadelphia
49
14
Denver
48
14
Phoenix
80
13
San Jose, Calif.
39
9
Sacramento
40
9
Washington
29
9
Raleigh, N.C.
37
9
Portland, Ore.
31
8
Chicago
41
8
Seattle
35
8
Atlanta
39
8
Austin, Tex.
31
7
Las Vegas
43
7
Dallas
41
6
New York
38
5
Houston
30
1
Miami
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Source: Redfin
By The New York Times
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SOURCE : https://www.nytimes.com/2019/08/22/realestate/the-end-of-bidding-wars.html
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