Almost two-thirds, or 64%, of the homeowners posted by RedFin agents in March 2021 were, according to a RedFin report. The tech-based real estate agent faced its eleventh straight month in which more than half of Redfin ‘bids encountered bid wars, and the second straight month in which bid war rates exceeded 60%.
A combination of historically low interest rates and more people working from home during the coronavirus pandemic has sparked bidding wars in regions across the country. Salt Lake City had the highest bid war rate in March of any of the 42 metropolitan areas, with 87.1% of Redfin agent bids exposed to competition. Pittsburgh’s bid war rate at 82.0% and Boise, ID at 81.5%. Virginia Beach, VA, and Las Vegas rounded out the top 5 at 80.9% and 78.1%, respectively.
The more people enter the home market, the greater the housing shortage and the number of buyers far outnumber the number of sellers. According to RedFin, these bidding wars are so intense that 46% of homes are sold within a week of entering the market, up from 30% a year ago.
According to Lori Garlick, Las Vegas Redfin real estate agent, competition will continue to intensify as vaccines continue to roll out and back-to-school season returns.
“The competition is escalating in part because it’s almost summer and families want to close their homes before the next school year starts and their kids have to go back to the classroom,” Garlick said, even hotter.
Single-family homes are currently the most competitive in the housing market with a bid war rate of 66.5% in March, but townhouses are not far behind with a bid war rate of 65.6%. Single family homes have been especially attractive to those seeking space and privacy during the pandemic, although a town home is a viable option for the same reasons.
Redfin Seattle real estate agent Heather Stovall said the surge in townhouse listings could be explained by the unavailability of many single-family homes.
“My clients recently accepted an offer of $ 890,000 for their Fremont townhouse after they sold it for $ 795,000. They received the property with a really nice deck, built-in outdoor kitchen, and views of Mount Rainier eight offers in total. “
Luxury real estate continues to attract bidding wars the most frequently. Approximately 69.4% of the $ 800,000-1 million homes listed saw fierce competition in March, and competition intensifies as homes get more expensive. Next came homes between $ 1 million and $ 1.5 million, with 68.6% of RedFin listings seeing bid wars.
Less expensive homes listed for less than $ 200,000 saw the least competition but still had a bidding war rate of 59.1%.
Click here to read the full report.