Around a year ago, bidding wars were all the rage in many housing markets across the U.S. But times have changed, and the fierce competition of the past has all but disappeared — except in a few places.
In a handful of markets, a shortage of homes for sale has caused bidding wars to return, according to real estate brokerage Redfin.
In March, 44.3% of home offers Redfin agents wrote involved a bidding war. That number hasn’t budged much in five months.
But in a handful of markets, bidding wars have become more common. Following are the markets where homebuyers are most likely to be caught in a bidding war based on the percentage of Redfin offers that faced competition.
1. Worcester, Massachusetts
Offers in this metro area that faced competition:
- In March 2023: 84%
- One year prior: 79.6%
Not only have bidding wars returned to Worcester, but wealthy residents there are facing another increasing cost: higher taxes. Massachusetts is one of the few places hiking taxes in 2023.
2. Boston
Offers in this metro area that faced competition:
- In March 2023: 71.1%
- One year prior: 79%
Yes, you might have to outmaneuver the competition in Boston to get a house, but all that effort can be worth it: Boston is one of “15 Great Places to Retire Where Health Care Is Good.”
3. Providence, Rhode Island
Offers in this metro area that faced competition:
- In March 2023: 70.8%
- One year prior: 78.7%
If you are hardworking and ambitious, Providence might be the place for you, regardless of your age. It is among “The 15 Cities With the Most Working Teens” and the “15 Best-Paying Cities for Working Seniors in 2023.”
The rest of the top 10
The other cities that made the top 10 — and the percentage of offers facing bidding wars in March 2023 — are:
- San Diego (68.9%)
- Washington, D.C. (68.2%)
- San Jose, California (67.2%)
- Baltimore (66.3%)
- San Francisco (64.8%)
- Philadelphia (61.3%)
- Chicago (60.3%)
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