6/16/2020
Competition Increases for Homebuyers as Coronavirus Drives Housing Shortage - Redfin
In Miami, just 28.6% of offers faced competition, the lowest rate of any market in this report. The metro with the second lowest bidding-war rate was also in Florida: Tampa, at 31.5%. Search …
Detroit experienced the largest increase last month, with the share of offers facing competition climbing 26.5 percentage points to 50%. Michigan was one of the few states in the U.S. that did not deem real estate an essential service during the coronavirus outbreak, but it began to ease restrictions on the industry in early May, which likely explains the jump in Detroit’s bidding-war rate.
Meanwhile, Las Vegas saw its bidding-war rate drop by 21.2 percentage points, making it the biggest decliner.
Single-Family Homes Were the Most Likely to See Bidding Wars
In May, 51.5% of offers for single-family homes faced competition, up from 45.6% in April. That compares with 48.7% of offers for townhouses and 38.8% for condos.
“People no longer want to share laundry or a yard,” Louis said. “I listed a single-family home in Boston proper at the height of the coronavirus lockdown and it got 14 offers. ‘Home’ means more right now than ever, and we’re seeing this new sense of urgency among buyers to nd places with more privacy.”
In some of the most competitive metros, including Boston and Seattle, agents said relatively affordable homes were the most likely to receive multiple offers.
“It feels like virtually every home between $300,000 and $500,000 gets into a bidding war now, whereas before the pandemic, it might’ve been closer to 50-50,” said Brian Richards, an agent in Tacoma, WA, which is in the Seattle metro area. “And like never before, buyers are willing to pay above the appraised value.”
Here’s a metro-level look at bidding war rates in May compared with April:
Metro area
Share of Red n offers that faced competition in May
Share of Red n offers that faced competition in April*
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https://www.redfin.com/blog/competition-increases-homebuyers-coronavirus-drives-housing-shortage/
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