More than half of Redfin offers were part of bidding wars for the second month in a row in June, according to new data from the brokerage.
More homebuyers are entering the market while mortgage rates continue to hit record lows, and as a result, 53.7% of Redfin offers faced competition last month. This is up from a revised rate of 51.8% in May and 44.4% in April, Redfin said.
Redfin noted that more than half of all offers faced bidding wars in 12 of the 24 metros included in its analysis.
“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” said Redfin Economist Taylor Marr in a written statement.
Renters and move-up buyers alike are competing for the small number of single-family homes on the market “as they realize they need more space for their families,” Marr added.
The most competitive markets? Boston, San Diego and Salt Lake City.
Boston had the highest bidding war rate in June, of 72.4%, staying on top after 67.2% of offers had a bidding war in May.
San Diego and Salt Lake City closely followed – 65.7% and 63.8% of offers in those markets faced competition, respectively.
On the least competitive end of the list, Miami had the lowest bidding war rate of 32.4%, closely topped by Chicago’s rate of 37.8% and Las Vegas at 39.2%.
In June, the number of homes overall for sale in the U.S. was down 21.3% year over year, while the number of new listings was down 12%, leaving inventory at its lowest level since at least 2012, according to Redfin data.
Single-family homes were most likely to be in a bidding war in June, with 56.2% of buyers facing competition. Supply in this segment is down 25% year over year, noted Redfin.
Townhomes and condos also saw supply restraints, 10.7% and 7%, respectively. Although supply in these parts of the market isn’t as low as single-family dwellings, 54.2% of townhomes were in a bidding war, as were 40.5% of condos, according to Redfin.
