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Redfin Bidding-War Rate Surpasses 60% In February as Housing Shortage Fuels Fierce Competition

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High-end single-family homes are the most likely to encounter competition

Seattle, WA – March 25, 2021 (PRNewswire) — (NASDAQ: RDFN) — Nationwide, 60.9% of home offers written by Redfin agents faced bidding wars in February, up slightly from a revised rate of 59.3% in January. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage, which also notes that this represents the 10th-straight month in which more than half of Redfin offers encountered competition.

Homebuyers have grappled with intense competition over the past year because low mortgage rates and a pandemic moving spree made possible by remote work have prompted scores of Americans to purchase houses. This has intensified an already-acute shortage of homes for sale, meaning there are far more buyers than sellers.

Mortgage rates, however, have started moving higher. The interest rate for a 30-year fixed-rate mortgage is now about 3.09%, compared with 2.67% at the end of 2020. For now, this appears to be increasing urgency among homebuyers rather than scaring them off. 

“The uptick in mortgage rates is likely fueling more bidding wars in the short term because house hunters are rushing to buy homes before rates rise even further,” said Redfin Chief Economist Daryl Fairweather. “If mortgage rates move significantly higher, we’ll likely see some buyers move to the sidelines, which will curb competition in the long run.”

According to a recent Redfin survey, 17% of people would slow down their home searches if mortgage rates surpassed 3.5%. 

Another sign of a competitive market is when homes sell quickly and fetch more than sellers are listing them for. The typical home that sold in February went under contract in 32 days—23 days faster than a year earlier—and a record 36% of homes went for more than their asking prices.

“Every home I put on the market for under $700,000 is selling in a day,” said Redfin Jacksonville, FL real estate agent Heather Kruayai. “I recently listed a three-bedroom single-family house in Durbin Crossing that got 30 offers. I’ve never seen that in my life. We had to stop showings because the sellers just couldn’t accommodate that many people coming through their house. Buyers were calling me up themselves and pleading with me to pick their offers. My client ultimately chose the bidder who had the highest offer and agreed to pay the difference if the appraisal came in lower than the contract price.”

With many Americans moving to more affordable places during the pandemic, Jacksonville has seen an influx of out-of-state buyers who can afford to offer far above sellers’ asking prices, Kruayai added. This has contributed to a surge in home value. The total worth of homes in the Jacksonville metro area was $165.9 billion in February, up 21.1% from a year earlier. That’s the biggest increase among the 50 most populous U.S. metros.

Salt Lake City, San Diego and Phoenix Were the Most Competitive Markets
Salt Lake City had the highest bidding-war rate of the 24 U.S. metropolitan areas in this analysis, with nearly all Redfin offers (92.9%) facing competition. Next came San Diego at 84.4% and Phoenix at 78.1%. Denver and San Francisco/San Jose rounded out the top five, both at 76.4%.

“You have to pull out all of the stops. Successful buyers are offering $30,000 to $50,000 over the asking price, limiting or waiving inspections, offering free rent-back and agreeing to make up the difference in the event of a low appraisal,” said Redfin Denver real estate agent Monica Arnett.  “I had one client offer $800,000 in cash on a $750,000 listing. They were outbid by someone who offered $900,000.”

High-End Homes Were the Most Likely to Attract Bidding Wars
Homes listed between $1 million and $1.5 million were the most likely to see bidding wars, with 71.4% of Redfin offers facing competition in February. Next came homes listed between $800,000 and $1 million, with 69.6% of offers seeing bidding wars, followed by homes listed between $400,000 and $500,000, at 62.9%. Homes listed for less than $200,000 were the least likely to see competition, but still had a bidding-war rate of 49.3%.

Single-Family Homes Were Much More Competitive Than Condos
Single-family homes had a bidding-war rate of 63.7% in February, making them the property type most likely to encounter competition. By comparison, 58.5% of offers for townhomes and 49.3% of offers for condos faced bidding wars.

Single-family homes have performed relatively well during the pandemic because homebuyers have been prioritizing space and privacy over shorter commute times and access to city centers.

To view the full report, including charts and metro-level data, please visit: https://www.redfin.com/news/real-estate-bidding-wars-february-2021 

Source: Redfin

RE/MAX National Housing Report for February 2021

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Prices Rise, Inventory Falls but Sales Stay High as Spring Approaches

Denver, CO – March 17, 2021 (PRNewswire) — The median home price reached $291,000 in February – the highest in the 13-year history of the report – while sales set a new high for the month and inventory continued to drop to record lows.

The record February home sales were up 5.7% year over year, but the increase over January was flat at 0.3%. The February-over-January average for the previous five years has been 5.4% in the ramp-up toward the seasonally higher sales of spring.

The Median Sales Price across the report’s 53 metro areas topped the previous high of $290,000 reached in August and tied in October and December during last year’s housing surge. In February of last year, the Median Sales Price was $260,000.

At the same time, February’s Months Supply of Inventory was down 11.9% from January’s and 42% year-over-year, as buyers continued to close on properties in greater numbers than sellers opted to list their homes. Inventory has declined month over month for 20 of the past 21 months.

“The shrinking inventory continued to fuel ongoing bidding wars, and our agents report some homes selling for well above listing price,” said Adam Contos, CEO of RE/MAX Holdings, Inc. “It’s a complicated, competitive market, with buyers having to act quickly and aggressively to get the home they want. Conditions seem to be keeping some potential sellers on the sidelines, but that could change if or when they see more move-up options on the market. With seasonality, still-low interest rates, and gains in new construction, we hope to see some relief in supply during the coming months. The expertise of a full-time, experienced real estate professional who can guide homebuyers and sellers through any environment has never been more valuable.”

Amplifying the dearth of inventory, Months Supply of Inventory dropped to 1.6, which was lower than any previous month in report history and down from 3.4 in February 2020. Days on Market set a February record of 42 as homes sold on average 18 days faster than last February.

In all, five report records for February were rewritten: most home sales, highest price, lowest inventory, fewest Days on Market and fewest Months Supply of Inventory.

Highlights and the local markets leading various metrics for February 2021 include:

Closed Transactions 
Of the 53 metro areas surveyed in February 2021, the overall average number of home sales is up 0.3% compared to January 2021, and up 5.7% compared to February 2020.  Leading the year-over-year sales percentage increase were Augusta, ME at +39.7%, New York, NY at +28.6% and Honolulu, HI at +25.1%.

Closed Transactions: 5 Markets with the Biggest YoY Increase
MarketFebruary 2021
Transactions		February 2020
Transactions		Year-over-Year
% Change
Augusta, ME44031539.7%
New York, NY2,4531,90828.6%
Honolulu, HI72357825.1%
San Francisco, CA3,7163,11819.2%
Dover, DE66356218.0%

Median Sales Price – Median of 53 metro median prices
In February 2021, the median of all 53 metro Median Sales Prices was $291,000, up 2.1% from January 2021, and up 11.9% from February 2020. No metro area saw a year-over-year decrease in Median Sales Price. Forty-five metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +29.6%, Augusta, ME at +26.5% and Pittsburgh, PA at +25.8%.

Median Sales Price: 5 Markets with the Biggest YoY Increase
MarketFebruary 2021
Median Sales Price		February 2020
Median Sales Price		Year-over-Year
% Change
Boise, ID$415,000$320,00029.6%
Augusta, ME$215,000$170,00026.5%
Pittsburgh, PA$200,000$159,00025.8%
Manchester, NH$350,000$284,00023.2%
Omaha, NE$235,000$196,00019.9%

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in February 2021 was 42, up two days from the average in January 2021, and down 18 days from the average in February 2020. The metro areas with the lowest Days on Market were Boise, ID at 17, Nashville, TN at 21 and Omaha, NE at 22. The highest Days on Market averages were in Des Moines, IA at 94, Miami, FL at 89 and Augusta, ME at 87. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market: 5 Markets with Biggest YoY Decrease
MarketFebruary 2021
Days on Market		February 2020
Days on Market		Year-over-Year
% Change
Boise, ID1750-66.0%
Dover, DE2964-54.7%
Richmond, VA2852-46.2%
Little Rock, AR3157-45.2%
Cincinnati, OH2341-42.7%

Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in February 2021 was down 11.9% from January 2021 and down 42.0% from February 2020. Based on the rate of home sales in February 2021, the Months Supply of Inventory decreased to 1.6 compared to 1.9 in January 2021, and decreased compared to 3.4 in February 2020. A six months supply indicates a market balanced equally between buyers and sellers. In February 2021, of the 53 metro areas surveyed, one metro area reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory included a three-way tie at 0.5 months among Albuquerque, NM, Denver, CO, and Boise, ID and a four-way tie at 0.6 between Raleigh-Durham, NC, Charlotte, NC, Phoenix, AZ and Seattle, WA.

Months Supply of Inventory: 5 Markets with Biggest YoY Decrease
MarketFebruary 2021
 Months Supply
of Inventory		February 2020
Months Supply
of Inventory		Year-over-Year
% Change
Hartford, CT0.95.3-83.0%
Albuquerque, NM0.52.6-80.8%
Providence, RI1.04.9-79.6%
Augusta, ME1.66.4-75.0%
Raleigh-Durham, NC0.62.1-71.4%

For specific data in this report or to request an interview, please contact mediarelations@remax.com.

About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with over 135,000 agents in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by David and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit news.remax.com.

Description
The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 53 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.

CVS Health Invests $114 Million in Affordable Housing Across the Country in 2020

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The Company’s Investments Address Housing Insecurities and Promote Community Health Improvement in Underserved Communities

Woonsocket, R.I. – Feb. 23, 2021 (PRNewswire) — To address housing insecurities and promote community health improvement in vulnerable populations, CVS Health (NYSE: CVS) invested over $114 million in affordable housing in 2020. The company’s investments over the past year will lead to the construction and rehabilitation of more than 2,800 affordable housing units in 30 cities, across 12 states.

Throughout 2020, CVS Health worked closely with community organizations to provide affordable housing options and services to people facing significant challenges. As a result of the company’s affordable housing investment strategy, over 460 permanent supportive housing (PSH) units will be constructed to provide stable homes for people who may be experiencing homelessness, affected by chronic illness, victims of domestic violence, in need of behavioral health or addiction treatment, or are challenged by similar life and health situations. In addition to affordable housing, these PSH residents will also receive access to a wide range of services to stabilize and improve their health including social, behavioral health and addiction recovery services. Additionally, of the 2,800 affordable housing units being constructed or rehabilitated through CVS Health investments, 560 of the units are dedicated to housing seniors, while over 100 are reserved specifically for veterans and their families.

“We recognize that equitable access to stable and supportive housing serves as one of the greatest barriers to better health for many people,” said Karen S. Lynch, President and CEO of CVS Health. “Through our investments and collaboration with local partners, we’ve been able to provide underserved communities across the country with quality housing, economic support, and educational training opportunities based on the unique needs of the population.”

The company’s efforts to address housing insecurity are a core part of Destination: Health, a series of CVS Health business programs focused on helping people improve their health outside of a clinical setting.

Addressing Racial Inequality and Health Disparities in Black Communities

CVS Health’s increase in investments in affordable housing with supportive services during 2020 is part of the company’s larger commitment to address racial inequity and the social determinants of health in Black communities. Under this commitment, CVS Health will invest nearly $600 million over five years to advance employee, community and public policy initiatives that address inequity faced by Black people and other disenfranchised communities.

As the company invests in local affordable housing developments, it is also exploring opportunities to bring other social justice and equity initiatives to those same local communities to amplify the impact of the programs. These expansions include bringing the company’s Project Health program to new markets. Project Health offers free biometric screenings to help identify chronic conditions before they become life-threatening illnesses. CVS Health’s workforce initiatives programs, focused on empowerment, education and training, are also being introduced to new markets to help residents achieve meaningful employment opportunities. 

In September 2020, CVS Health announced its investment of $13.7 million to  renovate 230 low-income housing units at the Rosewind Apartments in Columbus, Ohio. In collaboration with the Columbus Metropolitan Housing Authority and the Ohio Capital Corporation for Housing, CVS Health’s investment will provide comprehensive local support including quality housing, significant improvements to the local community center and support for new community programs for families and individuals facing challenges in the North Linden neighborhood.

In November 2020, the company invested $8.7 million to help build a new 116-unit affordable housing complex in the Mercy Drive neighborhood of Orlando, Florida. The development includes three buildings, a community center, playgrounds, on-site laundry facilities and onsite management offices. All residents will have access to on-site supportive services including adult literacy, employment assistance and financial management programs.

Creating Healthier Communities Through Affordable Housing

In 2020, CVS Health invested in affordable housing projects and programs in different locations throughout the country including Alaska, Ohio, Massachusetts, Texas, Georgia, Florida, Wisconsin, Hawaii, California, New York, Maryland, and Colorado.

Examples of these investments include:

  • $15.3 million to build 144 new homes and services for Ohio seniors, including those with disabilities, in two affordable housing communities known as Eastern Woods Senior Apartments in Findlay and Northland Gate in Columbus.
  • $6.2 million for Happiness House Apartments in Canandaigua, NY, a supportive housing community providing 30 new homes for families and seniors, including people who have been experiencing homelessness or struggling to find stable housing.
  • $4.3 million for Bridgeway Community Housing in Wasilla, AK, a 24-unit PSH project designed to meet the needs of Alaskans experiencing homelessness, living with mental disabilities, who may have substance abuse disorders or are working to avoid recidivism, and any other Alaskans whose histories present barriers to accessing mainstream housing.

“Our investments in housing and work with regional organizations this past year have enabled us to help improve individual and community health outcomes during a particularly challenging time,” said Keli Savage, Head of Impact Investment Strategy, CVS Health. “By focusing our investment strategy on providing affordable, service-enriched housing for low-income regions and communities of color, we’re able to help those most impacted by the burden of housing instability. We’re proud to continue furthering our commitment to investing in opportunities that promote greater access to affordable housing and the essential services people need on their path to better health.”

SOURCE CVS Health

http://www.cvshealth.com