As lackluster home sales push inventory growth in the nation’s housing markets, new data from Redfin suggests purchasing competition has begun to ease in nearly every metro across the country.
According to the company, 56% of Americans who purchased a home in the first quarter of 2019 closed on the very first home they made an offer on. Not only is this up from 52% in 2018, but it also marks the highest first-offer success rate in the last three years.
“Last year homebuyers had to pull out all the stops to land a home in competitive West Coast markets, but this year there are more homes for sale and the odds are more in the buyer’s favor,” Redfin Chief Economist Daryl Fairweather said. “In San Jose, the market has dramatically slowed from a year ago, and it’s actually now easier to get an offer accepted in San Jose than in many other parts of the country.”
Redfin notes that the West Coast, which was home to last year’s most competitive markets, saw the biggest year-over-year increases in first-offer success rates.
In fact, 63% of San Jose homebuyers successfully purchased the first home they made an offer on, contrasting last year’s rate of only 25%. This means San Jose now has the second-highest first-offer success rate in the nation, following Charlotte, North Carolina’s 70% rate.
“2018 was a difficult year to buy a home in San Jose,” Redfin Agent Stella Phua said. “Very few homeowners were listing their homes for sale, and nearly everyone who did received multiple offers with few if any contingencies. Many buyers, especially first-timers or those who needed financing, were not quite ready to compete at that level. This year, buyers are more prepared to make strong offers, and there are more homes being listed, which is really helping.”
The image below highlights which metros lead in first-offer success rates:
(Click to enlarge)
NOTE: Redfin’s analysis is based on home offer and purchase data gathered from thousands of Americans that bought homes with Redfin agents over the past five years.
