(NASDAQ: RDFN) -- Ten percent of offers written by Redfin agents on behalf of their homebuying customers faced a bidding war in November, down from 29% a year earlier and hovering at the 10-year low for the 5th consecutive month, according to a new report from Redfin (www.redfin.com). This rate is likely to remain low through the end of the year, and begin rising again in early 2020.
San Francisco was the only market that remained somewhat competitive in November. The bidding war rate there was 30%, down from 53% a year earlier and down from 34% in October. The month-over-month decline of 3.7 points was slightly below the 2010-2018 average October-to-November decline of 4.6 points.
"Almost every home for sale that is in a great location and priced competitively is still receiving multiple offers," said San Francisco Redfin agent Miriam Westberg. "One home we made an offer on last week had 25 other offers! However, homebuyers definitely feel like they can be more selective this year, so homes that don't check every single box may only get a single offer, and tend to take a longer time to sell."
Competition was scarce everywhere else in the country, with no other market seeing a bidding war rate higher than 17%. The bidding war rate hit its lowest point in at least five years in November in Chicago, Houston, Portland, OR and Los Angeles.
"Even though the number of homes for sale has been falling faster than we normally see this time of year, buyers just aren't feeling any sense of urgency right now," said Redfin chief economist Daryl Fairweather. "The supply and demand data still says that it's a seller's market, but homebuyers working with Redfin agents in places like Portland and Denver are feeling and acting like they're in control. Most of the homes that they are seeing are simply not worth getting into a bidding war over, so they're more than willing to wait until the new year in the hopes that more homes will hit the market."
2019 as a whole has been a welcome reprieve from the frenzied market of years prior, but with fewer new listings hitting the market and more homes selling quickly after being listed, 2020 may be shaping up to swing the pendulum back in the other direction.
Houston was the least competitive market in November, with just 1.4% of offers facing a bidding war. Miami was barely above that at 1.7% and Raleigh was the third least competitive market with 2.6% of offers facing competition.
Rate of Bidding Wars by Metro Area: November 2019
Metro Area Share of Redfin Share of Redfin Share of Redfin Offers that Faced Offers that Faced Offers that Faced Competition Competition Competition November 2019 November 2018 October 2019 San Francisco, CA 30.3% 52.6% 34.0% San Diego, CA 16.8% 36.2% 15.8% Denver, CO 14.4% 23.6% 6.6% New York, NY 12.7% 19.8% 7.2% Boston, MA 12.2% 34.3% 12.0% Atlanta, GA 11.3% 23.1% 3.7% Los Angeles, CA 11.3% 33.8% 14.2% San Jose, CA 10.8% 41.2% 22.0% Phoenix, AZ 10.7% 24.4% 14.2% Philadelphia, PA 10.7% 43.5% 13.2% Seattle, WA 10.4% 24.5% 8.8% Washington, D.C. 9.4% 34.9% 8.9% Dallas, TX 7.1% 23.2% 6.7% Portland, OR 6.6% 30.1% 8.2% Austin, TX 5.5% 20.0% 7.6% Las Vegas, NV 5.4% 18.5% 6.7% Chicago, IL 5.2% 23.2% 6.2% Sacramento, CA 5.1% 44.1% 8.6% Raleigh, NC 2.6% 15.2% 10.4% Miami, FL 1.7% 18.4% 4.7% Houston, TX 1.4% 21.7% 8.4% National 10.1% 28.7% 10.1%
To read the full report, please visit: https://www.redfin.com/blog/november-2019-real-estate-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.
View original content to download multimedia:http://www.prnewswire.com/news-releases/redfin-report-bidding-wars-remain-at-10-year-low-in-november-300970914.html