According to a recent report from Redfin, nearly 54% of the home officers it placed this past June faced a bidding war, making this the second consecutive month that bidding war rates have risen.
To no real surprise, this stiffer competition is related to both historically low mortgage rates and the very limited housing supply that continues to influence the market. In Redfin’s report, the company noted that single-family homes were most likely to have a bidding war at 56.2%, followed closely by townhouses, then condos.
Another interesting fact was that many of these bidding wars included multiple bids, not just two hopefuls vying for the property – showing that despite the impacts from COVID-19 and its economic recession, the housing market continues to surge forward thanks in large part to these low rates.
“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,” said Redfin Economist, Taylor Marr, in the report. “It’s like a game of musical chairs, where only the best bidders get a seat.”
For more information, check out Redfin’s report.