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Redfin Bidding War Report Shows Early Signs of a Cooling Real Estate Market in Some Cities While Competition Intensifies in Others
Rachel Musiker / Redfin / May 10, 2013
Seventy-three Percent of Home Offers Faced Competition in April, the Lowest Level this Year
Welcome to Redfin’s latest in real estate analysis—the Bidding War Report. The data for this report are based on Redfin’s Offer Insights, statistics compiled from more than 2,000 offers written each month by Redfin agents for Redfin’s home-buying clients.
In April, 73 percent of the offers Redfin agents wrote faced competition. That percentage, which peaked in February with 79 percent of offers facing competition, has been shrinking for the last two months. The market is undeniably hot, but Redfin’s data on bidding wars and insights from our agents indicate that some markets are just beginning to cool. For example, in San Francisco and Washington DC competition retreated slightly from March to April, with bidding-war rates falling 0.8 and 5.8 percentage points, respectively.
In California, Redfin agents are starting to notice small changes in the market. Redfin agent Jacki Asplund in Los Angeles noted that offers she has written over the last few weeks have faced competition against 8 to 15 other offers, whereas earlier in the season, nearly every homebuyer she represented competed with 30 or 40 other buyers. Barry Moon has felt the San Francisco‘s East Bay market has calm a bit as some homebuyers are backing out of this seller’s market, waiting for more inventory to even things out before they re-enter.
Meanwhile, competition for homes in Seattle, Baltimore and Chicago has intensified over the last month, with bidding-war rates climbing 2.1, 3.9, and 1.2 percentage points, respectively. In Chicago, Redfin agent Greg Whelan is growing accustomed to showing a home to his clients while as many as 10 other agents are touring at the same time with their clients. To handle the increased demand there, listing agents are imposing offer deadlines, a practice that became common last year in markets like San Francisco and Washington DC.