US realtor giant Redfin says that over half of the offers it put in on behalf of its clients faced competition for the second month running in June despite the economic impacts of the global pandemic. 53.7% of offers to purchase homes made by the national brokerage firm faced competition in June, a figure which is significantly higher than that of April (44.4%).
The intense competition is being fuelled by historically low mortgage rates in the US, with average mortgage rates at 3.03% for the week ending 9th of July. A figure which represents the lowest the lowest since 1971 according to mortgage company Freddie Mac. The other factor is incredibly low inventory and increased demand from people who have reassessed their living situation in light of the extended lockdown period.
Homes for sale in the US in June were down 21.3% on the same month last year which represents the lowest housing stock levels seen in the country since 2012. Unsurprisingly, the type of housing seeing the most bidding wars is the single-family home with 56% of Redfin offers for these seeing competition in June as people look for more space. Particularly affected are suburban areas of cities such as Boston where one realtor commented that the current market was “like a game of musical chairs”.