[Their graph shows 4 cities on the west coast, NYC, and Chicago as the places where home prices are down (all the others are up). I have to scratch my head and ask, “Why would anybody with a choice want to buy a home there anyway?”]
Is a downturn in the housing market imminent?
Bidding wars for homes in Seattle, San Jose, and San Francisco have crashed in the past year, reflecting an alarming national trend, according to a new report from Redfin.
The report found that the national bidding-war rate in August was 10.4%, down from 42% a year earlier. The rate printed at the lowest level since 2011.
At the start of 2018, the national bidding-war rate was 59%, then plunged as homebuyers became uncomfortable with sky-high housing prices, increasing mortgage rates, and economic uncertainty surrounding the trade war. The housing market started to cool in late 2018, as the competition among homebuyers collapsed by 4Q18, this is an ominous sign for the national housing market that could soon face a steep correction in price.