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Housing in Housing News
Bidding Wars Intensify Nationwide As Mortgage Rates Hit New Low
Source: Inman
Written by: Patrick Kearns
More than half of all affords submitted by Redfin brokers confronted competitors in June, in response to a brand new survey launched Friday by the nationwide actual property brokerage. It’s the second consecutive month the place bidding wars had been extra frequent than not.
At the identical time, mortgage charges proceed to plummet. The common 30-year fixed-rate mortgage fell to three.03 %, the bottom fee since Freddie Mac started monitoring the statistic in 1971.
“Bidding wars proceed to be fueled by traditionally low mortgage charges and fewer properties up on the market than nearly any time within the final 20 years,” Redfin economist Taylor Marr. “It’s like a recreation of musical chairs the place solely the most effective bidders get a seat. Both renters and move-up patrons who’ve held onto their jobs are vying for the small variety of single-family properties on the market as they understand they want extra space for his or her households.”
Nationally, the variety of properties on the market was down 21.3 % 12 months over 12 months, marking the bottom stock market since 2012. The variety of new listings to hit the market was down 12 % 12 months over 12 months.
Bidding wars are the most frequent for single-family properties, in response to the survey. The survey discovered 56.2 % of Redfin affords on single-family properties confronted competitors, whereas 54.2 % of townhomes and 40.5 % of condos confronted bidding wars.
Regionally, Boston noticed the very best frequency of bidding wars, with 72.4 % of affords going through competitors, in response to the survey. It’s the second straight month the place Boston was the nation’s most competitive market.
“This is the most competitive actual property market I can bear in mind,” James Gulden, who has been a Boston Redfin agent since 2012, mentioned in a press release. “There are a number of bids on almost each property I see, whether or not I’m representing the client or the vendor.”
“I’m seeing the most competitors within the suburbs, the place properties are promoting in a matter of days,” Gulden added. “Sellers don’t need properties to be on the market any longer than crucial due to COVID-19, so that they’re setting supply deadlines, which create a frenzied, competitive ambiance.”
San Diego, the place 65.7 % of affords confronted competitors and Salt Lake City, the place 63.8 % of affords confronted competitors, had been the second and third most competitive markets, respectively.
Miami was the least competitive market, in response to the survey. Only 32.4 % of affords within the South Florida coastal metropolis confronted competitors, in response to the survey.
