(Bloomberg) — Recession fears in the United States are killing home buyers’ fighting spirit, sending the rate of bidding wars to an eight-year low.
About 10 percent of buyers faced competitors in August, down from more than 42 percent a year earlier, according to an analysis by brokerage Redfin Corp. of offers written by its agents. The share fell from 11.4 percent in July, which was the lowest since at least 2011. It reached 59 percent 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 percent from 73.5 percent a year earlier. Atlanta, which had a 33.9 percent rate a year earlier, was the least competitive, with a 2.4 percent share.
In Boston, the rate was 15 percent, reflecting a 45.1 percent year-over-year drop compared with August 2018.