Bidding wars dominate November’s home sales

For the seventh month in a row, the majority of home sales faced bidding wars, according to Redfin.

While buyer competition tapered off alongside the typical seasonal slowdown, 53.6% of U.S. property listings drew multiple bids in November. That rate descended from October's revised 58.5% and 2020’s peak of 59.3% in August, but jumped from 10.1% one year earlier.

Miniscule mortgage rates and tight inventory continue to stoke homebuyer demand. Markets with the highest growth in new listings also saw some of the highest amount of bidding wars.

“Buyers aren’t going to compete for homes that have been sitting on the market,” Daryl Fairweather, Redfin's chief economist, said in the report. “They will typically only get into a bidding war for a newly listed, desirable home that is move-in ready.”

San Diego had the highest percentage of bidding wars of the 24 largest metro areas, at 75.3%. The city also posted a 13% year-over-year gain in new listings.

Denver came second with a 66.7% bidding war share in November and also showcased the biggest monthly jump, rising from 54.3% in October. The combined statistical area of San Francisco-San Jose followed with 65.8%. Only Seattle and Sacramento, Calif., had bidding war shares of 60% or higher. Salt Lake City — the most competitive metro from the last two months — fell to tenth place with a bidding war share of 56%, down from 77.6% in October.

Minneapolis had the lowest competition at 34.6%. It also fell furthest month-over-month from its rate of 59.4%. Chicago trailed at 36.4%, followed by 37.1% in Tampa, Fla. Houston, New York and Atlanta were all below 38% as well.