According to a report from Redfin, competition in the housing market—although having lessened a bit since autumn arrived— is still intense. In fact, Redfin just shared that after analyzing its data from clients’ bids placed in October, more than half of the offers placed by Redfin clients were met with intense bidding wars. In order for an offer to officially be considered as part of a bidding war, a Redfin agent must have reported that the bid received at least one competing bid.
October makes the sixth month straight that more than half of Redfin’s offers have been embroiled in a bidding war competition. The reasonings provided by experts for this sustained intensity of competition in the market (especially during the pandemic) is contributed to record-low mortgage rates, a shortage of homes for sale, and increased remote work opportunities that are now enabling Americans to relocate with a wider range of options for location.
This tight supply and increased demand ration has caused home prices to spike dramatically, growing 15% (year over year) just within the month-long window ending Nov. 1. And these numbers show no signs of peaking or dropping anytime soon, according to experts’ predictions.
Specific numbers offered by Redfin reveal that 56.8% of Redfin offers were involved in bidding wars, this just down slightly from the previous month’s 57.4%. At the peak this year, which was in August, 59.3% of offers resulted in bidding wars.
Melissa Killham, a Redfin real estate agent in Kenosha, WI, commented on the current real estate market in her area particularly: “Has the market calmed down since the summer? Yes, but every offer I submit still faces multiple competing bids and we continue to see a lot more buyers than we normally would at this time of year.”
Killham added: “The typical home today gets four or five offers, compared with eight or nine back in September. The buyers who are in the market right now don’t need to buy. They’re buying if they find the perfect home with more space and a big backyard, and if not, they’re staying put until they do.”
Further highlights from the Redfin report reveal that Salt Lake City was the most competitive market, while Las Vegas experienced the least competition among hopeful buyers.