The majority of home sales have faced bidding wars for the seventh straight month, according to Redfin.
While buyer competition eased alongside the typical seasonal slowdown, 53.6% of US home listings withdrew multiple bids in November. That rate declined from the revised 58.5% in October and the 2020 high of 59.3% in August, but rose from 10.1% a year earlier.
Tiny mortgage rates and tight inventory continue to fuel homebuyer demand. The markets with the highest growth in new listings also saw some of the most bid wars.
"Buyers will not compete for houses that were in the market," Redfin 's chief economist Daryl Fairweather said in the report. "You will usually just get caught up in a bidding war for a newly listed, desirable home that is ready to move into."
San Diego had the highest percentage of bid wars in the 24 largest metropolitan areas at 75.3%. The city saw a 13% year-over-year increase in new offerings.
Denver took second place with a bidding war rate of 66.7% in November and also showed the largest monthly jump of 54.3% in October. The combined statistical area of San Francisco-San Jose followed with 65.8%. Only Seattle and Sacramento, California had bid war shares of 60 percent or more. Salt Lake City – the most competitive subway in the past two months – fell in tenth place with a 56% bidding war rate, compared with 77.6% in October.
Minneapolis had the lowest competition at 34.6%. From 59.4%, it fell the furthest in a month-on-month comparison. Chicago was 36.4%, followed by 37.1% in Tampa, Florida. Houston, New York, and Atlanta were also below 38%.