For the fourth consecutive month, over half of home offers from Redfin faced a bidding war.
Across the U.S., 54.5% of Redfin home offers faced competition in August, ticking down slightly from July’s 57.3%.
To break it down further, the competition remained fierce in coastal areas. This includes San Diego, which saw 64.5% in bidding wars, and San Francisco and San Jose – which both had 65.2% in bidding wars, Redfin said.
“The pandemic-driven trend of people moving away from densely packed cities toward more affordable and spacious regions means homes in places like Sacramento and Phoenix are becoming nearly as competitive as the Bay Area,” Redfin Chief Economist Daryl Fairweather said in a statement.
Affordable metros located more inland also saw intense bids.
“Low mortgage rates are motivating homebuyers who are thinking of moving to go through with it,” Fairweather said. “I expect competition to continue picking up in more affordable parts of the country.”
For example, Salt Lake City sits at the top of the list yet again, as 65.2% of offers saw a bidding war, as well as Sacramento (57.8%), Phoenix (56.5%) and Austin, Texas (58.2%).
Offers on single-family homes were most likely to be involved in a bidding war, at 56.6% of offers, followed by townhomes at 54.7% and condos at 41.3%.
Homes priced between $600,000 and $800,000 were the most competitive in August – 58.4% of homes in this price range were in bidding wars, while 58.2% of homes priced between $1 million and $1.5 million engaged in bidding wars, and 44.7% of homes priced above $1.5 million did the same.