Friday
August 1, 2014

Frigid Temps Freezing Out Bidding Wars

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Frigid Temps Freezing Out Bidding Wars

Home buyers may face less competition in the Northeast, at least for now.

Frigid weather has caused bidding wars to plummet in such cities as Boston and Baltimore, according to Redfin’s December 2013 Real-Time Bidding War Report. The survey compiles thousands of offers written by Redfin agents across 22 markets. 

The report showed that the percentage of agents facing bidding wars in December dropped to 52 percent from 62.4 percent a year earlier. However, bidding wars increased in half the markets analyzed, while they decreased in the other half. Redfin’s report says the differences seem to be seasonal factors, such as frigid temperatures and snowstorms. 

“Boston had multiple snowstorms during December, which fully shut down home tours at times,” says Adam Welling, a local Redfin real estate professional. “For the adventurous homebuyers who  braved the arctic-like conditions, the reward was a bit of space in a market that had otherwise been congested and claustrophobic.” 

Bidding wars in Boston and Baltimore fell by 19.7 percent and 13.5 percent, respectively, in December. On the other hand, bidding wars were the most prevalent in San Jose, Calif., the survey showed.  

For staying competitive in a bidding-war situation, the report showed that 36 percent of Redfin clients used a cover letter to help present a winning offer.  

Source: Redfin

Read more:

Are Underpriced Homes Fueling Bidding Wars?
Can You Spark a Bidding War on Your Listing?
Buying Frenzy Starting to Cool?