11% of Redfin Offers Faced Competition in July, the Lowest Rate Since at Least 2011

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https://www.redfin.com/blog/july-2019-real-estate-bidding-wars/

San Francisco—one of the most expensive markets in the country—was the most competitive in July, with 35 percent of Redfin offers facing a bidding war. That’s down from 72.4 percent a year earlier and up from 28 percent in June, mirroring the seven-percentage-point increase seen from June to July of last year.

San Diego was home to the second-most competitive market in July, with 21.3 percent of Redfin offers facing competition. It’s followed by Boston (16.4%), Los Angeles (16%), Philadelphia (14.3%) and Denver(14%). The bidding war rate in San Jose, San Francisco’s neighbor to the south, was just 13.3 percent, and in Seattle, another expensive West Coast market, the rate was only 7.8 percent.

Miami was the least competitive market in July, with just 1.3 percent of the offers submitted by Redfin agents facing competition. Next comes Houston, where 4.8 percent of offers faced competition, New York(6.3%), Dallas (6.6%) and Las Vegas (7.3%).

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Starting recently on both commercial and residential contracts, lenders are starting questioning the validity and accuracy of appraisals see if the mortgages are well protected. Put it differently, those 33% steep prices asked or offered banks need to make sure they do not over-fund creating another housing defaults when prices will further erode. -8 to -12% annual price erosion in Silicon Valley is what I sized during 2018-2019. May be prices will stay put if not further erosion may occur. This summer has been sluggish.
Also, the builders are giving incentives to buyers. One can negotiate some upgrade and sometimes they offer $xxxxx toward closing cost if you use their preferred lender. They need to unload new homes quickly.

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Thought is a norm for builders to do so.