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Five times more U.S properties went into bidding wars in August, compared to the same month last year, says a Redfin data. Squeezed inventory has led to a hike in buyer demand which has seen as many as 54.5% properties undergoing a series of increasing price bids. In some of the metro areas, as many as 65% properties were involved in such wars.
“The market is on fire. There just isn’t enough on the market to supply the huge demand for homes. A lot of military buyers are trying to take advantage of the low interest rates for VA loans. Anything on sale for less than $600,000 has multiple offers, and sometimes they’re getting more than 20 offers,” stated Lisa Padilla, a Redfin agent in San Diego, in a press release.
65.2% of the for-sale homes in the Salt Lake city and the San Francesco-San Jose area witnessed such price bids. The numbers were pretty close for San Diego (64.5%), Washington, D.C., (63.5%), and Seattle (62.2%).
Daryl Fairweather, Redfin’s Chief Economist felt that “The pandemic-driven trend of people moving away from densely packed cities toward more affordable and spacious regions means homes in places like Sacramento and Phoenix are becoming nearly as competitive as the Bay Area. Low mortgage rates are motivating homebuyers who are thinking of moving to go through with it. I expect competition to continue picking up in more affordable parts of the country.”