15 cities where homebuyers are most likely to face bidding wars


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Many potential owners may think they are going to an open house only to suddenly find themselves competing at an auction instead.

In cities across the United States, bidding wars have erupted among those hoping to land a home, according to real estate brokerage Redfin.

In February, 68.6% of property offers written by Redfin agents involved a bidding war, the highest percentage since the company started tracking these figures in April 2020. This number is seasonally adjusted and, when it is not adjusted, 71.4% of offers written in February were subject to a bidding war.

In some cities, the level of competition is particularly fierce. Here are the markets where homebuyers are most likely to get caught up in a bidding war based on the percentage of Redfin offers facing competition.

15. Kansas City, Missouri

Homes in Kansas City Missouri
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Offers that faced competition in February 2022: 76.5%

Offers that faced competition a year ago: N / A

As the bidding wars grew fiercer in Kansas City, some home buyers decided to wave the white flag. Rather than try their luck on the KC subway, they head about an hour west to Topeka, Kansas.

Unfortunately, this exodus has simply driven up Topeka’s prices, and the bidding wars are also underway. common there.

13. Tampa, Florida (tie)

Tampa, Florida
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Offers that faced competition in February 2022: 77.4%

Offers that faced competition a year ago: 58.1%

How hot is this market? About 16% of homes sold in all of Florida during February were located in Tampa, making it the Sunshine State’s premier destination.

During the month, the median selling prices in the city jumped about 28% compared to the previous year.

13. Austin, Texas (tie)

Townhouses in Austin, Texas
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Offers that faced competition in February 2022: 77.4%

Offers that faced competition a year ago: 48.8%

It seems like everyone is moving to the capital of Texas these days. As we’ve reported, homebuyers are growing increasingly frustrated with their inability to land a home.

A local realtor told Realtor.com that in Austin, buyers “make nine offers, they exceed demand by 15%, and someone always exceeds that.”

12. Palm Bay, Florida

Palm Bay, Florida
Thomas Kelley / Shutterstock.com

Offers that faced competition in February 2022: 78.3%

Offers that faced competition a year ago: N / A

Not only is it hard to find a home in this part of paradise, but the rents in Palm Bay also make life miserable. Last year, rental costs soared 24%, forcing some seniors to edge of roaming.

11. Salt Lake City

Houses in Salt Lake City, Utah
Jason Finn / Shutterstock.com

Offers that faced competition in February 2022: 78.4%

Offers that faced competition a year ago: 94%

In DecemberSalt Lake City has seen more bidding wars than anywhere else, with 74% of listings receiving competitive bids.

The town no longer holds that infamous title, but competition for homes remains intense.

Late last year, real estate agent Dani Griffith told a local tv station that a shortage of inventory drove prices up. She says:

“We have a huge inventory shortage here in Utah. We have a lot of buyers and not enough sellers, so we are feeling the price effects.

10. Boston

Boston, MA
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Offers that faced competition in February 2022: 78.6%

Offers that faced competition a year ago: 67.7%

In Beantown, “bidding wars and waivers of contingencies are now the rule, not the exception,” according to Boston News 25.

Daryl Fairweather, chief economist at Redfin, recently told the outlet that there are now 40% fewer homes for sale in Boston than there were a year ago.

9. Sacramento, CA

Houses in Sacramento, California
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Offers that faced competition in February 2022: 78.8%

Offers that faced competition a year ago: 63.6%

Like so many housing markets, Sacramento is on a tear. In February, the median price drawn $31,000a gain of 5.5% compared to the previous month.

For perspective, the market typically sees a 2% to 3% gain for the full year.

8.Seattle

Seattle Homes District
Frank Fell Media / Shutterstock.com

Offers that faced competition in February 2022: 78.9%

Offers that faced competition a year ago: 76.1%

Although the Seattle market has been sizzling for some time, there are small signs that a change could be in the air.

the Seattle Times reports that local resident John Stevens listed his five-bedroom Tudor on the subway last month. He told The Times:

“I knew I wanted to take advantage of this pop in the market that wasn’t going to last.”

But instead of a bidding war, he got no offers — until a buyer finally bought the house at the list price.

7. Spokane, Washington

Houses in Spokane, Washington
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Offers that faced competition in February 2022: 79.2%

Offers that faced competition a year ago: 83.3%

the New York Times reports that Spokane is the newest poster child for all that has gone wrong with the housing market. As people flee the overpriced big cities — think New York and Los Angeles — they land in Austin, Texas, and Portland, Oregon.

An influx of these residents is driving up prices in these newly adopted hometowns, forcing residents to flee to places like Spokane.

And the cycle begins again.

6. Colorado Springs, Colorado

Colorado Springs Neighborhood
Nirmal Bhagat / Shutterstock.com

Offers that faced competition in February 2022: 79.5%

Offers that faced competition a year ago: 82.9%

A recent title in The Colorado Springs Gazette says it all: “Colorado Springs Home Prices: Another Month, Another Record.”

Things are so out of control here that buyers typically include escalation clauses, stating how many thousands of dollars they’re willing to exceed the highest bid.

As Patrick Muldoon, owner of property management firm Muldoon Associates, told The Gazette:

“It’s 100% a seller’s market. Buyers simply don’t stand a chance.

5. San Francisco/San Jose, CA

San Fransisco neighborhood.
Bertl123 / Shutterstock.com

Offers that faced competition in February 2022: 79.9%

Offers that faced competition a year ago: 79.1%

This area of ​​California has always been both expensive and highly prized. But even by Bay Area standards, things are off the charts right now.

In 2021, nearly 73% of households in San Francisco sold above list price. Three houses in one postcode – 94116 – sold for nearly double the asking price.

4. Raleigh, North Carolina

Houses in Raleigh, North Carolina
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Offers that faced competition in February 2022: 80%

Offers that faced competition a year ago: 69.1%

As we recently reported, Raleigh-area real estate agent Monique Edwards – who calls activity in her market “absolutely crazy” – posted a viral video showing hordes of people lining up for enter an open day.

For more on the nation’s hottest markets, check out “12 Cities Where Home Values ​​Have Jumped Over 40% Since the Pandemic Started.”

3. Minneapolis

Minneapolis, residential area of ​​Minnesota
719production / Shutterstock.com

Offers that faced competition in February 2022: 81.1%

Offers that faced competition a year ago: 69.7%

In often cold Minneapolis, the demand for homes couldn’t be hotter.

The situation is so intense for buyers that Twin Cities Habitat for Humanity recently published a guide to find out how to win a bidding war.

2.Denver

Homes in Denver, Colorado
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Offers that faced competition in February 2022: 83%

Offers that faced competition a year ago: 76.2%

After a decade of double-digit price increases, things may finally be leveling off in Denver. The reports say that metro housing permits jumped 16% in 2021 – the highest number seen in five years – so more supply is coming to market.

Still, it will take time for things to improve. For now, the bidding wars continue.

1. El Paso, TX

Neighborhood of El Paso in Texas
IflyAerialPhotography / Shutterstock.com

Offers that faced competition in February 2022: 87.5%

Offers that faced competition a year ago: N / A

There are a lot of bidders in this Lone Star State town.

In Redfin’s press release, real estate agent Salvador Palos calls El Paso’s housing inventory “ridiculously low.” Supply chain issues and labor shortages are stifling the supply of new homes.

As a result, properties for sale in El Paso often receive 10 to 15 bids and sell for $20,000 above listing price, Palos says.

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Laura J. Boyer