{"id":21949,"date":"2015-05-05T05:00:42","date_gmt":"2015-05-05T12:00:42","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/research\/?p=21949"},"modified":"2020-10-06T12:57:23","modified_gmt":"2020-10-06T19:57:23","slug":"spring","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/spring\/","title":{"rendered":"Homebuyers Faced Fewer Bidding Wars In March Thanks to Surge in New Listings"},"content":{"rendered":"

Bidding wars gained steam as the spring home-buying season got under way, with 61 percent of offers written by Redfin agents facing competition from other buyers in March. That\u2019s up from 57 percent in February, but down slightly from 63 percent in March 2014.
\nHow 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. In March 2014, there were 9 percent fewer new listings added than in\u00a0March 2013. This year, 9.2 percent growth 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.
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\nWhile it\u2019s normal for the market to heat up from February to March, the big increase in buyer demand likely will make multiple offers even more prevalent in the coming months. New listings, though strong, are being devoured<\/a> by motivated homebuyers, so inventory might not be able to keep pace with demand this spring.
\nIn San Francisco, 94 percent of offers faced competition in March, up from 88 percent a year ago, agents reported. Sacramento also saw a big jump, with 81 percent of offers facing bidding wars, compared with 66 percent last March.
\nBecause there are fewer investors, all-cash sales are down to 33 percent from when they peaked two years ago at 41 percent, and most people are dependent on mortgages to purchase homes.
\n\u201cSellers want a sure thing,\u201d said Leslie White, a Redfin agent in Washington, D.C. \u201cI\u2019ve had sellers turn down an offer $50,000 over the nearest bid because it came with an appraisal contingency attached. A lower bid with no contingencies is sometimes more attractive to sellers who want to close the deal without hassles.\u201d
\nThat\u2019s one reason people are making offers that aren\u2019t dependent on financing, meaning they agree to go through with the home purchase even if they\u2019re turned down for a loan. For buyers who need a mortgage, that tactic could be risky because it forces them to bring cash to the closing table if an appraisal falls short or forfeit their earnest money deposit if financing doesn\u2019t come through. Fifteen percent of accepted offers waived the financing contingency in March, according to Redfin agents.\u00a0Last March, 9 percent of offers waived financing; in 2013 the share was 7 percent.
\n\u201cIt\u2019s rare that I write an offer with any contingencies, whether it\u2019s for inspection, financing or even appraisal,\u201d said Redfin agent Brigid Van Randall in Silicon Valley. \u201cMaking an offer completely non-contingent is an effective way to compete with other buyers because essentially you\u2019re committing to buying the home no matter what flaws it may have or how you come up with the money.\u201d
\nThat game plan is prevalent throughout Silicon Valley, especially in Palo Alto, Menlo Park and Los Altos, Van Randall said, and it helps explain how traditional buyers are staying competitive in markets where multiple offers are common.
\nMultiple Offers:<\/b><\/p>\n