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Competition Increases for Homebuyers as Coronavirus Drives Housing Shortage - Redfin

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Bidding Wars Climb in May as Coronavirus Intensies Housing Shortage

Published on June 15, 2020 by Lily Katz

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Half of Redn offers faced competition, up from 44% in April.

In May, 49.4% of Redn offers faced competition, up from 43.9% during the prior month.

While sellers are jumping back into the market as states across the country reopen, there remains a shortage in houses for sale, which is fueling bidding wars; the number of listings on the market in May was 18.9% lower than the same period last year. “Bidding wars also jumped in May because homebuyers felt they were starting to get more clarity around where the economy was headed, with cities around the nation lifting stay-at- home orders. This gave house hunters more condence to compete,” said Redn lead economist Taylor Marr. “But with coronavirus cases back on the rise in many states, only time will tell whether that condence is sustainable.”

Of the 24 metros in this analysis, 11 saw a majority of Redn offers facing competition in May. That’s up from eight metros in April.

See Latest Coronavirus Housing Market News

https://www.redfin.com/blog/competition-increases-homebuyers-coronavirus-drives-housing-shortage/

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