West Coast markets cool down; buyer see more success on first offers

First-offer success rates are up

Things are looking up for homebuyers on the West Coast. According to new data, the historically hot coastal markets are finally cooling down — and buyers are having an easier time snagging those dream homes.

Good news for the West Coast

According to new data from real estate brokerage Redfin, homebuyers on the West Coast now have a higher shot at winning their dream home on the first bid.

A whopping 63 percent of buyers in San Jose, California, saw first-offer success last quarter. That’s up from just 25 percent last year and significantly higher than the national average of 52 percent. The city has the second-highest first-bid success rate in the nation.

San Diego buyers are in luck, too. Last quarter, 53 percent of homebuyers in the area closed on the first home they bid on. It marks a jump of 16 percentage points in just one year.

Redfin’s Chief Economist Daryl Fairweather explains, “Last year, homebuyers had to pull out all the stops to land a home in competitive West Coast markets, but this year there are more homes for sale and the odds are more in the buyer’s favor. In San Jose, the market has dramatically slowed from a year ago, and it’s actually now easier to get an offer accepted in San Jose than in many other parts of the country.”

In Seattle, 59 percent of buyers saw first-bid success, up from 45 percent in 2018, while Denver buyers had success 61.1 percent of the time last quarter.

Other spots for first-time success

The improvements aren’t limited to just the West Coast, though. The city’s No. 1 spot for first-offer success is actually Charlotte, North Carolina, where 70 percent of buyers last quarter purchased the first home they bid on.

Minneapolis buyers saw a 62.5 percent success rate, while those in Baltimore won their first-offer home 59.3 percent of the time. Raleigh, North Carolina; Chicago; Miami; and San Francisco round out the top 10 list.

First-offer success rates have actually declined in Austin and San Antonio, Texas, as well as Phoenix.

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