What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Real Estate

Real estate bidding wars return to another 10-year low in December

San Francisco was the only housing market to see serious competition among buyers

Despite low housing supply continuing to affect the housing market as 2019 came to an end, Redfin indicates the frequency of bidding wars for real estate continued to fall.

According to the company, only 9% of purchasing offers made on its site faced a bidding war during the month. Not only is this percentage down 12% from last year’s rate, but it also pushed the rate down to another 10-year-low.

Daryl Fairweather, Redfin’s chief economist, said bidding war rates likely hit their true bottom in December. And Despite the decline, Redfin claims the rate is likely to rise again as the nation’s real estate market heats up in the spring.  

“Amid the current global economic uncertainty, mortgage rates will remain low in the coming months, which will boost demand for homes in 2020,” Fairweather said. “That means more buyers competing against each other and bidding up prices.”

This is already happening with San Francisco as the report determined the city was the only housing market to experience notable competition in December.

During the month, the bidding war rate was 26% in San Francisco, down from 35% a year earlier. Although this rate is a slight decline from November’s rate of 28%, it’s still significant, considering inventory is still a problem within the city’s housing market.

“There aren’t typically very many homes for sale in San Francisco in December,” said Saleem Buqeileh, Redfin market manager. “Last month we saw more buyers than usual out looking for a ‘steal’ and bidding on homes, which led to multiple offer situations on some homes where all of the buyers came in below list price, rather than above.”

Although competition continued to heat up in San Francisco’s housing market, Redfin notes it was scarce everywhere else in the country, with no other market seeing a bidding war rate higher than 17% in December.

In Dallas and Raleigh, North Carolina, the bidding war rate fell to zero and hit its lowest point in at least five years in Los Angeles. Aside from the zero rates, Atlanta had the third-lowest bidding war rate in December at 4%.

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.

Most Popular Articles

FHFA extends forbearance period to 18 months

In an effort to protect homeowners, the FHFA extended forbearance coverage to 18 months and pushed the eviction and foreclosure moratorium to June 30.

Feb 25, 2021 By

Latest Articles

How lenders can prepare for growing fraud threats

HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy.

Feb 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please