Over half of the home offers made through Redfin are facing a bidding war the online real estate site says. August was the fourth consecutive month that the rate of bidding wars increased as low mortgage rates prompt more buyers to fiercely compete for the limited supply of homes on the market. Nearly 55 percent of Redfin home offers faced competition in August.
In San Diego, bidding wars are even more fierce with 65.2 percent of home properties seeing multiple competition offers. Homes priced between $600,000 and $800,000 saw the most competition last month.
Near-record low mortgage rates are giving buyers more buying power and the leverage to engage in a bidding war for the small selection of homes available for sale.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.