Prospective homebuyers are not trying to one-up each other in making offers on property, according to new data released by Redfin.
During August, Redfin found only 10.4 percent of offers written by its agents on behalf of their homebuying customers, down by a significant 42 percent from one year earlier. August’s peaceable housing market overtook the 11.4 percent rate of bidding wars in July as the lowest on record since at least 2011.
The San Francisco metro was the most competitive market in August, with bidding wars on 31 percent of offers written by Redfin agents on behalf of their homebuying customers. Elsewhere in the Bay Area, San Jose’s 10.3 percent bidding war rate was down from 77 percent from one year earlier, the steepest 12-month decline among the major housing markets.
"Despite remaining near three-year lows, mortgage rates have failed to bring enough buyers to the market to rev up competition for homes this summer," said Redfin Chief Economist Daryl Fairweather. "Recession fears have been enough to spook some would-be buyers from making the big financial commitment of a home purchase. But assuming a recession doesn't arrive this fall or winter, consumers will likely adjust to the new 'normal' of continued volatility in the stock and global markets, and the people who need and want to make a move will take advantage of low mortgage rates. As a result, I still expect homebuying competition to pick back up in the new year."