April’s 72% of Redfin offers being in bidding wars marks the 12th-straight month in which more than half of home offers encountered competition.
Redfin reports 72% of home purchase offers written their agents in April faced competition. That’s WAY up from 44.9% in April 2020. But April 2020 bidding-war rate was hit hard by pandemic lockdown orders.
Still, it’s a new phenomenon for the whole country to experience the same types of bidding wars that higher-priced markets like San Francisco have experienced for years.
Low inventory is the well-known culprit here, but I don’t know if many markets where like-for-like inventory is plentiful can sustain long-term outbidding.
When a correction comes, those markets will correct more than markets like San Francisco where limited geography keeps pricing from dropping too much in corrections.
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