(Bloomberg) -- Recession fears in the U.S. are killing homebuyers' fighting spirit, sending the rate of bidding wars to an eight-year low.
About 10% of buyers faced competitors in August, down from more than 42% a year earlier, according to an analysis by brokerage Redfin Corp. of offers written by its agents. The share fell from 11.4% in July, which was the lowest since at least 2011. It reached 59% in March 2018, and has been declining since then.
Mortgage rates near three-year lows “have failed to bring enough buyers to the market to rev up competition for homes this summer,” Daryl Fairweather, chief economist for Redfin, said in a statement. “Recession fears have been enough to spook some would-be buyers from making the big financial commitment of a home purchase.”
San Francisco remains the most competitive market, but the multiple-offer rate fell to 31% from 73.5% a year earlier. Atlanta, which had a 33.9% rate a year earlier, was the least competitive, with a 2.4% share.
To contact the reporter on this story: Prashant Gopal in Boston at pgopal2@bloomberg.net
To contact the editors responsible for this story: Rob Urban at robprag@bloomberg.net, Christine Maurus
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