Low mortgage rates and booming demand for homes led to nearly two-thirds of costlier homes having competition last month as the supply remains tight.
Homebuyers are ready to pay up to $1 million while competing in the housing market in the U.S. which acts as a guide to town houses in California, which is scorching at the moment.
Homes in the price range of $800,000 and $1 million saw at least 64.6% of the bidding by home buyers. This was followed by 62% for housing between $1 million to $1.5 million and 61.7% for properties above $1.5 million.
In New York, a Redfin Corp Manager, Candace Evans, said in a statement that buyers should not expect to win the bid for a house until their sixth or seventh attempt. This market is not for those who fall in love with a house.
As per Bloomberg News, Salt Lake City saw the highest bidding in 37 areas in U.S. Metropolitan December. As per an analysis by Redfin, it had 74% of offers that faced competition, followed by 73.1% in Tucson and 71.1% in San Diego.
Demand for homes was boosted after the remote working increased after the Covid-19 pandemic. Prospective buyers looked to compete for a home in smaller cities with the availability of cheap mortgage rates. The inventory of the available homes continues to shrink in the hottest of markets.
Redfin Corp said that nearly 60% of the home offers handled by its agents in December faced competitive bids. December saw the lowest rate in 2021 but an increase of 54% from December 2020 as demand remained high due to the pandemic.
As per Redfin, vacation homes were always considered pricey, and their popularity increased during Covid-19 has also contributed to bidding wars in the premium segment. Townhouses saw a bidding rate war of 62% and 61.3% for single-family homes.
