While some say homebuyer competition could peak in the near future, it didn't reach new heights until April.
According to Redfin, the bidding wars reached an all-time high: 72% of listings received multiple bids per month. This corresponds to a jump of 66.7% in March and 44.9% in April 2020. It is also the 12th consecutive month in which over 50% of the houses marketed were exposed to bidding wars.
The lack of available housing, mortgage rates below 3% and the easing of pandemic restrictions made for a perfect storm of fierce competition and soaring property prices. That combination resulted in a record high of 48% of homes selling above list price in the four weeks leading up to May 2nd. Potential buyers are increasingly discouraged by the intense conditions.
Among the 45 largest subway areas, Salt Lake City faced the highest competition, with 83.5% of properties in bidding wars – a percentage that actually fell from 86.1% in March.
"The people who live here want to stay here, and we are seeing a lot of buyers from the West Coast and other major cities migrating this way and paying all the money," Campbell Dosch, Salt Lake City's Redfin agent, said in an interview . "Move-up buyers have a tough time because they can sell their home in a weekend, but they can't buy because everything sells too quickly and no one takes conditional offers, which makes it a catch-22 for that crowd. " And so it is from Ogden to Provo. "
San Diego and Spokane, Washington, followed with 83.3% of the bidding wars, followed by 78.7% and 75%, respectively, in March. Boise, Idaho's 81.8% and Phoenix 80.5% rounded out the top 5.
Jacksonville, Florida had the least competition at 43.2%, down from 60.7% the previous month. Bakersfield, California came next to 50%, falling from 75% in March, followed by 54.2% in Miami, down 52.8% monthly.