summer market heats up

Bidding war ensues as summer market heats up

Bidding war ensues as summer market heats up

When there are more home buyers than there are homes for sale, prices rise.

Mostly, that’s because buyers have to compete with each other for available homes by offering to pay more than the seller is asking.

buyers in Boston, San Diego, and Salt Lake City were almost twice as likely to face bidding wars than buyers in Miami, Chicago, Las Vegas, and Tampa

But while competition and bidding wars are good for home sellers, it can cause stress for buyers. That’s why home shoppers in today’s market need to be prepared.

In most metros, buyer demand is high while the inventory of homes for sale is low. That means, a lot of hopeful home buyers are facing competition. So how likely is it that you will?

Well, according to one recent analysis by Redfin, 53.7 percent of buyers faced a bidding war in June, which is up from 44.4 percent in April.

Of course, how likely you are to find competition depends on where you’re looking and what you’re looking to buy.

For example, buyers in Boston, San Diego, and Salt Lake City were almost twice as likely to face bidding wars than buyers in Miami, Chicago, Las Vegas, and Tampa.

Similarly, buyers of single-family homes were more likely to face competition than those looking for townhouses or condos.

Bidding war rates by metro area, May 2020 and June 2020

Metro AreasShare of Redfin offers that faced bidding wars in June 2020Share of Redfin offers that faced bidding wars in May 2020
San Francisco/San Jose, CA58%55.8%
Los Angeles, CA58.1%56.5%
Las Vegas, NV39.2%36.2%
Bidding war rates by metro area, May 2020 and June 2020

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Calvin Kim
Local Las Vegas loan officer who is passionate about funding your American dream. Serving the local market since 2003, my number one goal is to ensure you choose the right loan program and offer you the best mortgage rate possible. Building lasting relationships found on trust, honesty and reliability.

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