Multiple offer bidding wars are down considerably in SF, and nationwide


  • b743b 920x920 Multiple offer bidding wars are down considerably in SF, and nationwide

    San Francisco is still the most competitive market in the country, but multiple offer situations are down substantially since the same time last year.

    San Francisco is still the most competitive market in the country, but multiple offer situations are down substantially since the same time last year.


    Photo: Redfin

  •  Multiple offer bidding wars are down considerably in SF, and nationwide

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San Francisco is still the most competitive market in the country, but multiple offer situations are down substantially since the same time last year.

San Francisco is still the most competitive market in the country, but multiple offer situations are down substantially since the same time last year.



Photo: Redfin


San Francisco is still the most competitive housing market in the country, but even here the bidding frenzy seems to have died down, according to recent Redfin data. Only 35 percent of offers written by Redfin agents for SF buyers faced a bidding war in July 2019, compared with a staggering 72 percent just one year earlier.

However, the lull may not last long. The number of competitive bids is already up from 28 percent in June of this year.

“Although the market isn’t as hot as it was last year, this spring and summer have been busy in San Francisco. That’s partly because homebuyers are feeling pressure to move quickly due to the high-profile tech IPOs, whether that pressure is real or perceived,” said San Francisco Redfin agent Miriam Westberg in the report. “Low interest rates are also a factor in increased homebuyer interest since the beginning of the year. The market has definitely picked up since the winter and it seems like prices and competition are slowly heading back to mid-2018 levels.”


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San Francisco, while down from its super-competitive 2018 numbers, is still by far the most competitive market in the country. Second-place San Diego saw only 21.3 percent of Redfin buyers in competition, followed by Boston in third place (16.4 percent), then LA (16 percent), Philadelphia (14.3 percent) and Denver (14 percent). San Jose came in just behind Denver at 13.3 percent.

These figures are all down significantly from one year ago, and in many of the most expensive markets the bidding war rate was down to less than half of what it was one year earlier. Nationwide, the picture for buyers was even rosier. Only 11.2 percent of offers submitted by Redfin agents for their buyers were in competition, down from 45 percent in 2018 and the lowest figure since 2011.

Redfin Chief Economist Daryl Fairweather explained in the report that homebuyer competition began plummeting last year as mortgage rates inched up. As they have flattened, so too has homebuyer demand.

But, just like in SF, many of the most competitive markets saw what could be the beginning of an upward trend between June and July of this year, meaning the housing market may get more competitive as we head into the typically more-robust fall shopping season. “Overall, I expect homebuyer demand to strengthen in the second half of the year as the housing market continues to stabilize, but we may not see a big pop in bidding wars until early next year,” Fairweather said.


Emily Landes is a writer and editor who is obsessed with all things real estate.

Article source: https://www.sfgate.com/ontheblock/article/Multiple-offers-home-buying-san-francisco-bay-area-14373836.php

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