These cities have the most real estate bidding wars
(NEXSTAR) – The pandemic may be waning, but the real estate market is hotter than ever. As more Americans compete to own a limited number of homes, bidding wars are becoming a common part of the home buying experience.
A bidding war occurs when multiple potential buyers are interested in a property, so parties bid higher and higher in an attempt to secure the purchase.
It’s a trend future homeowners are familiar with in tight markets like San Francisco or Austin, but as the pandemic has allowed many wealthier workers to move anywhere, the bidding wars are growing. more common in places that had reasonable, if not dormant, real estate markets.
The city of Spokane in eastern Washington has seen the highest rate of bidding wars, according to analysis by Redfin. In January, 83% of home sales involved multiple competing offers, up from 61% the previous year.
“People across the country rushed into the housing market in January to beat rising mortgage rates,” said Daryl Fairweather, chief economist at Redfin. “And there were very few listings available for anyone rushing into the market, because most sellers wait until late spring to sign up. So there was a lot of demand before a lot of offer.
That, folks, is a recipe for a bidding war.
Metro areas with the highest rates of bidding wars in real estate transactions, according to Redfin’s analysis:
- Spokane, Washington (83.3%)
- Sacramento, CA (80.4%)
- Seattle (79.7%)
- Dallas (78.1%)
- San Francisco/San Jose (76.5%)
- Denver (75.8%)
- Austin, TX (75.6%)
- Virginia Beach, Virginia (75%)
- Raleigh, North Carolina (75%)
- Boston (74.8%)
- Salt Lake City (74.7%)
- Portland, OR (74.4%)
- Colorado Springs, Colorado (73.7%)
- San Diego (73.7%)
- Philadelphia (72.9%)
As competition intensifies in the cities listed above, potential buyers may look elsewhere, which intensifies competition and leads to bidding wars in new areas. San Antonio, Texas, for example, is becoming a popular real estate destination for those fleeing Austin price hikes, Fairweather said.
She expected the same trend to occur in more affordable Florida cities like Tampa and Cape Coral.
The percentages shown above indicate the share of bids that were part of a bidding war in January 2022. To make the list, Redfin said the metro area must have had at least 20 bids submitted by agents of Redfin.
See the complete analysis of the real estate site here.
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