Bay Area housing: competitive but fewer bidding wars

While Bay Area housing remains very competitive, bidding wars have declined sharply. July, 2019 saw 13.3 percent of housing sales in the San Jose area with multiple bis compared to 80 percent a year earlier. In the san Francisco area (including Oakland and Hayward) 35 percent of offers had bidding wards compared to 72.4 percent the previous year. Nationally, bidding wars accounted for 11 percent of sales, the lowest rate since 2011.

Analysts believe that uncertainty in the stock market along with a fear of overpaying is reducing the sense of urgency to make an offer.

San Francisco remains the most competitive market in the country and bidding wars still occur, particularly if the property is reasonably priced to begin with.

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Bay Area Number 1 in Bidding Wars

A new study by Redfin reports that the fiercest bidding on homes continues to take place in the Bay Area with the top 3 in February all in the region. San Jose was number 1 with 63 percent of homes selling above list followed by San Francisco with 62 percent and 59.1 percent in Oakland.

According to analysts, affordable housing is in short supply throughout the country but particularly in the Bay Area. The competition for these homes is fierce and many first-time homebuyers must try to out-bid other eager buyers.

Not surprisingly, San Jose, Oakland, and San Francisco were all in the top 5 in the nation’s fastest moving markets although Seattle ranked number one with nearly half of all homes sold within 12 days on the market.

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