Bidding Wars Intensify Nationwide As Mortgage Rates Hit New Low

Inman News

Boston experienced the highest frequency of bidding wars, with 72.4% of all offers facing competition, according to a Redfin survey released Friday.

More than half of all offers submitted by Redfin agents faced competition in June, according to a new survey released Friday by the national real estate brokerage. It’s the second consecutive month where bidding wars were more common than not.

At the same time, mortgage rates continue to plummet. The average 30-year fixed-rate mortgage fell to 3.03 percent, the lowest rate since Freddie Mac began tracking the statistic in 1971.

“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” Redfin economist Taylor Marr. “It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small number of single-family homes on the market as they realize they need more space for their families.”

Nationally, the number of homes for sale was down 21.3 percent year over year, marking the lowest inventory market since 2012. The number of new listings to hit the market was down 12 percent year over year.

Miami was the least competitive market, according to the survey. Only 32.4 percent of offers in the South Florida coastal city faced competition, according to the survey.