Wednesday , 23 July 2014
REEW Launches New Site! - Latest Articles:
Home » Beyond Today's News » Competitive Offers Ease on West Coast
Multi-bid offers have declined from 73.3 percent of offers written in April to 69.5 percent of offers written in May by Redfin agents, basically the same as May 2012, when 69.3 percent of Redfin offers went into bidding war. Most Redfin agents are located in West Coast markets.

Competitive Offers Ease on West Coast

Multi-bid offers have declined from 73.3 percent of offers written in April to 69.5 percent of offers written in May by Redfin agents, basically the same as May 2012, when 69.3 percent of Redfin offers went into bidding war. Most Redfin agents are located in West Coast markets.

The market’s easing is likely a result of the substantial monthly increase in inventory seen in April, the Seattle-based brokerage reported in its May 2013 Bidding War Report, which is based on statistics compiled from 2,000 offers written by Redfin agents in May. The number of homes for sale grew 6.4 percent from March 2013, the largest monthly gain since March 2010. Interest rates, which rose slightly in May, could also play a role in the declining demand seen last month.

Despite easing competition, seven out of 10 Redfin offers still faced multiple bids last month, causing homebuyers and their agents to use creative strategies.

Four of the top five most competitive markets were all in California: San Francisco (87.9% of Redfin offers faced bidding wars), Los Angeles (86.1%), Orange County (83.9%) and San Diego (72.6%). Boston rounded out the top five with 68.1% of Redfin offers facing competition.

San Diego and Orange County posting the largest month-over-month declines in May, seeing 16.4 and 10.3 percent drops in the percentages of Redfin offers facing bidding wars. Nearly half (49.0%) of Redfin’s winning offers were higher than the asking price, a slight drop from 51.9% last month.

Pre-inspections (a competitive strategy in which the buyer has the home inspected before submitting an offer so that they can safely waive the inspection contingency) are distinctly regional, included in 18.2% of Seattle offers, 3.3% of Washington DC offers, and 2.7% of Baltimore offers. Pre-inspections were not part of the winning offers in any other city.

The table below ranks the hottest real estate markets in order of competitiveness.

Market Were All Cash Used a Conventional Loan Used an FHA/VA Loan Waived Financing Contingency Had a Pre-Inspection Waived Inspection Contingency Used a Cover Letter

San Francisco

3.2%

64.5%

0.0%

14.5%

0.0%

24.2%

46.8%

Los Angeles

4.5%

68.2%

9.1%

11.4%

0.0%

0.0%

27.3%

Orange County

16.1%

61.3%

3.2%

9.7%

0.0%

3.2%

51.6%

San Diego

4.3%

69.6%

4.3%

4.3%

0.0%

0.0%

21.7%

Boston

2.2%

78.3%

2.2%

19.6%

0.0%

15.2%

47.8%

Seattle

6.1%

71.2%

9.1%

10.6%

18.2%

27.3%

28.8%

Multi-bid offers have declined from 73.3 percent of offers written in April to 69.5 percent of offers written in May by Redfin agents, basically the same as May 2012, when 69.3 percent of Redfin offers went into bidding war. Most Redfin agents are located in West Coast markets.

The market’s easing is likely a result of the substantial monthly increase in inventory seen in April, the Seattle-based brokerage reported in its May 2013 Bidding War Report, which is based on statistics compiled from 2,000 offers written by Redfin agents in May. The number of homes for sale grew 6.4 percent from March 2013, the largest monthly gain since March 2010. Interest rates, which rose slightly in May, could also play a role in the declining demand seen last month.

Despite easing competition, seven out of 10 Redfin offers still faced multiple bids last month, causing homebuyers and their agents to use creative strategies.

Four of the top five most competitive markets were all in California: San Francisco (87.9% of Redfin offers faced bidding wars), Los Angeles (86.1%), Orange County (83.9%) and San Diego (72.6%). Boston rounded out the top five with 68.1% of Redfin offers facing competition.

San Diego and Orange County posting the largest month-over-month declines in May, seeing 16.4 and 10.3 percent drops in the percentages of Redfin offers facing bidding wars. Nearly half (49.0%) of Redfin’s winning offers were higher than the asking price, a slight drop from 51.9% last month.

Pre-inspections (a competitive strategy in which the buyer has the home inspected before submitting an offer so that they can safely waive the inspection contingency) are distinctly regional, included in 18.2% of Seattle offers, 3.3% of Washington DC offers, and 2.7% of Baltimore offers. Pre-inspections were not part of the winning offers in any other city.

The table below ranks the hottest real estate markets in order of competitiveness.

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>