Home buyers are bidding up prices in some markets where inventories remain tight, particularly out West, according to a new report by real estate brokerage Redfin. Redfin found that California has four out of the top six cities with the hottest housing competition, while New Orleans has the least competitive market nationwide. The outbreak of bidding wars is what’s causing a home price surge in some markets, the brokerage says.
“For buyers, competition is challenging,” Rachel Musiker, Redfin spokeswoman, told CNBC. “To win, they will likely have to raise their offer price and waive contingencies, and it might take several months and several bidding wars before they find success.”
Places within commuting distance from busy hubs—such as Silicon Valley—are experiencing an increase in workers looking for affordable homes. Most selling homeowners receive multiple offers, which move within a week or less of going on sale, Musiker said to CNBC. Redfin evaluated which markets, with populations of at least 200,000, are seeing some of the most competition lately.
In the following markets, the majority of homes are being sold with multiple offers and sometimes with waived contingencies too:
- Fremont, Calif.
- San Jose, Calif.
- Oakland, Calif.
- Aurora, Colo.
- San Francisco