Redfin Report: 1 in 8 Redfin Offers Faced Competition in June, Down From 1 in 2 Last Year
In San Jose, just 6% of offers written by Redfin agents on behalf of their home-buying customers faced a bidding war last month, down from 74% a year ago
SEATTLE, July 10, 2019 /PRNewswire/ -- (NASDAQ: RDFN) — Twenty-eight percent of offers written by Redfin agents in San Francisco on behalf of their home-buying customers faced a bidding war in June, down from 65 percent a year earlier, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. Nationally, just 12 percent of Redfin offers faced a bidding war in June, down from 52 percent a year earlier.
Despite the slight cooling, San Francisco was still the most competitive metro in the nation in June. San Diego (19%) and Boston (17%) were the next-most competitive metros. No other metro area saw more than one in six offers face competition in June.
"Bidding wars are still somewhat common in San Francisco, mostly at price points around $1 million, which is relatively inexpensive for the city, but enough to buy a modest house in a number of neighborhoods," said Redfin San Francisco listing agent Chris Jurach. "Once you get above around $1.25 million, buyers are being more selective, leading to fewer bidding wars in those upper price ranges."
Even as San Francisco saw more than a quarter of offers face bidding wars, just south in San Jose, only 6 percent of offers faced competition in June, down from 74 percent a year earlier. The rate also fell by 12 points from May to June, slightly more than the 9 point drop over the same period a year earlier.
"San Jose buyers have seen homes for sale staying on the market longer, and more sellers dropping prices than either of the last two years," said Redfin San Jose agent Stella Phua. "When they see the market slowing down, they prefer to take a 'wait and see' approach. The only homes that are getting multiple offers now are the ones in the best locations, great condition, and priced lower than similar homes in the neighborhood."
The least competitive market in June was Miami, where none of the offers submitted by Redfin agents faced competition. Dallas (5.3%) and San Jose (6.3%) were the second and third-least competitive.
Other early housing market indicators suggest that the cooling trend could be short-lived.
"With low mortgage interest rates luring more homebuyers off the sidelines as supply dwindles, we're likely to see competition pick back up, especially for the most affordable homes and neighborhoods, where inventory is limited and buyers are most rate-sensitive," said Redfin chief economist Daryl Fairweather. "At Redfin, we've been seeing increases in the numbers of homebuyers starting their searches and going on home tours following the latest mortgage rate drops."
Metro Area |
June 2019 |
June 2018 |
May 2019 |
San Francisco, CA |
27.7% |
64.9% |
34.5% |
San Diego, CA |
19.4% |
60.7% |
23.9% |
Boston, MA |
17.2% |
72.3% |
18.6% |
New York, NY |
15.1% |
57.9% |
10.2% |
Los Angeles, CA |
13.7% |
66.7% |
14.0% |
Denver, CO |
12.3% |
50.0% |
12.4% |
Sacramento, CA |
11.8% |
50.0% |
7.8% |
Portland, OR |
11.8% |
48.1% |
12.5% |
Seattle, WA |
11.5% |
53.1% |
13.9% |
Las Vegas, NV |
11.5% |
55.9% |
18.4% |
Phoenix, AZ |
10.9% |
34.8% |
10.0% |
Chicago, IL |
10.0% |
35.4% |
8.3% |
Washington, D.C. |
9.9% |
49.2% |
13.0% |
Philadelphia, PA |
9.1% |
47.1% |
13.4% |
Austin, TX |
8.7% |
52.1% |
17.3% |
Houston, TX |
7.9% |
47.8% |
12.0% |
Atlanta, GA |
7.2% |
30.2% |
11.8% |
Raleigh, NC |
6.6% |
34.2% |
4.7% |
San Jose, CA |
6.3% |
74.4% |
14.7% |
Dallas, TX |
5.3% |
42.0% |
6.2% |
Miami, FL |
0.0% |
32.7% |
2.8% |
National |
12.2% |
51.7% |
13.2% |
To read the full report, including graphs and additional agent insight, please visit: https://www.redfin.com/blog/june-2019-bidding-wars.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.
SOURCE Redfin
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