Over 77 percent of all bids in the Bay Area face competition according to a new survey by Redfin. This is third in the U.S, behind only Salt Lake City (90.2 percent) and San Diego (78.9 percent). Most of the competition is on higher-priced homes.
Analysts say that historically low mortgage rates coupled with low inventory are driving the bidding wars. The number of homes for sale in the U.S. was down 43 percent from January 2020.
Despite the bidding wars, demand for houses remains strong.