Prospective homebuyers are enjoying more than just warmer weather this Spring.
Home shoppers are also facing less competition, as only 15 percent of offers faced competition in April, according to a recent report by real estate brokerage Redfin. The rate is a whopping 60 percent drop when compared to April 2018, according to Redfin chief economist Daryl Fairweather.
“Right now could be as good as it gets for buyers who want to avoid getting involved in bidding wars and price escalations,” Fairweather said. “There are many forces at play that may lure buyers back and create more competition in the near future. Interest rates are low compared to last year, price growth has stalled and have even fallen in some West Coast markets, and wages are growing.”
The red hot San Francisco Bay area market was the most competitive metro in the nation in April, however, it too reported that just 22 percent of offers faced competition — down from 75 percent a year earlier, according to Redfin.
“Multiple billion-dollar San Francisco-based companies are going public this year so I wouldn’t be surprised to see Bay Area bidding wars come back with a vengeance, pushing prices back up by next year,” Fairweather said.
Phoenix and San Diego were the next-most competitive housing markets in April, with 20 percent and 19 percent of offers facing competition, respectively. The least competitive housing markets in April were Miami (3 percent of bids facing competition), Raleigh (5 percent), Dallas (7 percent), Atlanta (7 percent) and Houston (7 percent), according to Redfin.
Data indicates that not only do homes sell faster in May, but they on average, sell for $1,600 more than the average listing throughout the year, according to Zillow. Across the United States, homes that are listed between May 1 and May 15 typically sold for about 0.7 percent more and six days faster than usual. While the precise time to list varies according to each market, the typical window sellers should aim for is in the middle of Spring, according to Zillow.
Check out the Redfin table below for more information on the most competitive U.S. markets.