SEATTLE--(BUSINESS WIRE)--In March, 61 percent of offers written by Redfin agents faced competition from other buyers, up from 57 percent in February, but down slightly from 63 percent in March 2014, according to Redfin (www.redfin.com), the next-generation real estate brokerage.
How is it that the market feels more competitive than last year, but the numbers say it's less so? There are more homes being listed for sale this year. A 9.2 percent year-over year increase in new listings has kept bidding wars below 2014 levels despite a 46 percent surge in home tour requests and a 36 percent increase in signed offers.
But some markets remain highly competitive. In San Francisco, 94 percent of offers faced competition in March, up from 88 percent a year ago, agents report. Sacramento also saw a big jump, with 81 percent of offers facing bidding wars, compared with 66 percent last March.
All-cash sales were down to 33 percent from when they peaked two years ago at 41 percent of the market. While more people are dependent on mortgages to purchase homes, buyers in competitive markets are waiving contingencies in order to win bidding wars. Fifteen percent of accepted offers waived the financing contingency in March, according to Redfin agents. Last March, 9 percent of offers waived financing; in 2013 the share was 7 percent.
“It’s rare that I write an offer with any contingencies, whether it’s for inspection, financing or even appraisal,” said Redfin agent Brigid Van Randall in Silicon Valley. “Making an offer completely non-contingent is an effective way to compete with other buyers because essentially you’re committing to buying the home no matter what flaws it may have or how you come up with the money.”
To read the full report, complete with market-by-market data on home-buying competition in March, please visit: https://www.redfin.com/research/reports/real-time-bidding-wars/2015/spring.html
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Redfin (www.redfin.com) is a next-generation real estate brokerage that represents people buying and selling homes. Founded by technologists, Redfin employs a team of experienced, full-service real estate agents who are advocates, not salespeople, earning customer-satisfaction bonuses, not just commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools, built by its own software engineers, that make the entire process of buying or selling a home easier and more fun. The company serves major markets across the U.S. and has closed nearly $20 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.