How Competitive is the Market?

A recent MReport highlights how intense the competition has become when purchasing a home. It is not shocking that those seeking higher-end single- family homes have faced increased competition. According to Redfin, 60% of their home offers written in February faced competition, which is a 1% increase from January. Redfin reveals that February was the 10th month in a row where more than half of offers experienced competition. Bidding has increased tremendously throughout the pandemic due to an increased demand for single-family properties, decreased inventory, and very low interest rates. Redfin also notes that even while interest rates gradually increase, the desire for homes continues to grow. Daryl Fairweather, Redfin Chief Economist, stated “The uptick in mortgage rates is likely fueling more bidding wars in the short term because house hunters are rushing to buy homes before rates rise even further. If mortgage rates move significantly higher, we’ll likely see some buyers move to the sidelines, which will curb competition in the long run.” Redfin agents state that this is the most intense competition they have experienced. Agents report that some homes have received dozens of offers, sell extremely quick, and sell for much higher than the asking prices. These trends are a sign that the market is not going to be slowing down anytime soon.

WHAT ELSE DID THE REPORT FIND?

Redfin reports that in February, homes went under contract in 32 days, which is 23 days faster than this time a year ago. In addition, 36% of homes sold for more than their asking prices. Redfin researchers revealed the strategies that can help potential buyers win a bidding war. According to the report, making a cash offer can almost quadruple the buyers chances of winning the bidding war. In addition, if the potential buyer waives the financing contingency, it can improve the buyers odds by 66%.

Click here to read the full MReport and learn more!

Click here to read the full Redfin report and learn more!