See also: Another SoCal Housing Bubble Already?
All-cash offers. Bidding wars. Overpriced property.
Southern California property sales have been insane lately. A new report by online real estate agency Redfin says Los Angeles has the nation's second-hottest home-buying market, with nearly 8 out of 10 (79.9 percent) deals resulting from “bidding wars:”
Nearly half (45.7 percent) of those sales ended with a price above what was asked, a Redfin spokeswoman told us.
L.A. was beat out only by San Francisco, the bedroom community for all that Silicon Valley wealth, which saw only slightly more of its home sales, 80.5 percent, end up in bidding wars, according to Redfin.
Two other SoCal communities, number three Orange County (78.2 percent) and number four San Diego (71.1 percent) made the top 5 of Redfin's hottest markets list, which is based on July sales.
Things might be cooling off a little, though.
The company says, compared to this time last year, competition for homes is down three percent in L.A. Nationally, the bidding-war rate was down more than five percentage points compared to June, Redfin says.
LA Redfin agent John Venti:
Each of the last three offers I wrote was accepted without a counter-offer, which has been unheard-of in Los Angeles, where a home in a popular neighborhood has typically attracted 30 or 40 offers over the last several months.
So there you have it. Things might actually calm down around here. Not that it would mean you could actually afford a house in L.A.