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We’re In A Buyers Market
Lower mortgage rates haven’t caused an uptick in demand just yet. In fact, according to new data, roughly about one in 10 new home buyers faces a bidding war in today’s market — Which is a pretty substantial drop from last year, when 45% of buyers saw competition when submitting offers on a house.
“Bid Wars” Dropping Off
According to new data from only about 11% of offers faced a bidding war in July — down from 45% the same time last year. It’s the lowest share of bidding wars since 2011 and well far its March 2018 peak of 59%. Mortgage rates have been mostly flat for the last month, and so has homebuyer competition, which was beginning a fast descent this time last year as mortgage rates were more toward 5%.
Overall, I expect homebuyer demand to strengthen in the second half of the year as the housing market continues to stabilize, but we may not see a big pop in bidding wars until early next year.
Competition Shrinks In West Coast cities
The steepest drop, though, was in San Francisco. Last year more than 72% of offers faced competition in the city. This year? Only 35% did. Nearby San Diego also so a significant drop over the year. Probably because everyone in California all moving up to Seattle and Portland now. On a local level, it’s noteworthy that some of 2018’s fiercely competitive markets like Seattle have seen their bidding war rates plummet the most year over year. Home prices in expensive markets have also been falling annually.
It seems like now is the time to look for your new home. Talk to Steve Gilbert and Seattle Mortgage Brokers today to get pre-approved for a home today.
*This article does not represent legal interpretation or advice. This article is for information, illustrative and entertainment purposes only and does not purport to show actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular investment action. This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. Seattle Mortgage Brokers, LLC NMLS: LO# 305371/1598279 | MB# 761615