Against the backdrop of rising prices and low inventory, bidding wars are still being seen in the real estate market. Competition among home buyers in December even climbed higher in some areas of the country, but the overall trend is lower.
The overall rate of Redfin offers facing bidding wars fell to 52 percent last month, compared to 52.8 percent in November and 62.4 percent a year earlier. Half of the housing markets in Redfin’s report posted an increase in bidding wars, while the other half logged a decline. Regional and seasonal factors were likely the cause for the recent monthly decline, but as the chart above shows, bidding wars are well below their peak of 76 percent seen in early 2013.
Competition during December dropped the most in Boston and Baltimore, which witnessed bidding wars that fell 19.7 percent and 13.5 percent, respectively. “Boston had multiple snowstorms during December, which fully shut down home tours at times,” explained Redfin Agent Adam Welling. “For the adventurous homebuyers who braved the arctic-like conditions, the reward was a bit of space in a market that had otherwise been congested and claustrophobic.” Let’s take a look at the top 10 most competitive housing markets in the United States.