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ORANGE COUNTY, CA-Bidding wars among homebuyers were most heated last month in major California markets, according to a report from Redfin, a real estate brokerage that represents people buying and selling homes. The report ranks Orange County as the most competitive market in the country, followed by San Francisco, San Diego and Los Angeles.

A total of 93.6% of offers Redfin agents wrote during April in Orange County faced competition. San Francisco saw 90.8% of offers in bidding wars last month, while San Diego saw 86.9% and Los Angeles, 86.2%.

GlobeSt.com was unable to reach Redfin to discuss why Orange County may have this lead as compared to other markets in California and throughout the country. One possible reason could be the quality of new master-planned communities being built in the county, such as the Great Park Neighborhoods, on which GlobeSt.com reported earlier this week. Emile Haddad, CEO of FivePoint Communities Management Inc., development manager for the community, tells GlobeSt.com, “Great Park Neighborhoods represents a very different approach to residential development with a number of aspects that make it unique. For builders, FivePoint Communities was able to eliminate much of the traditional risk by delivering developed homesites with approved plans. For buyers, that means carefully planned and integrated neighborhoods in a distinctive American Heritage design and amenities such as quality schools and parks built on a much faster timetable. In addition, we have collaborated closely with the local city officials to build the surrounding infrastructure that benefits the Orange County Great Park and provides long-term public benefits.”

In April, 73% of Redfin offers went into bidding wars, the lowest rate of competition the firm has seen this year. This figure is down from the peak in February, when 79% of offers faced competition. According to Redfin, the easing competitiveness suggests that certain housing markets, particularly in California, Washington DC and Boston, are showing early signs of cooling.

On the other hand, Seattle, Baltimore and Chicago saw competition intensify from March to April, with bidding-war rates climbing 2.1, 3.9 and 1.2 percentage points, respectively.

In San Francisco 91.5% of winning offers were higher than the seller's asking price, with the average winning offer coming in 7.8% higher than asking price. For example, to win a home listed at $950,000 (San Francisco's median asking price), a homebuyer should start their bid around $1,024,000.

As GlobeSt.com reported earlier this week, foreclosure starts are “bouncing higher” in a handful of non-judicial states where servicers are adjusting to legislation designed to prevent improper foreclosures, said Daren Blomquist, VP of RealtyTrac, an online source of real estate and foreclosure data, in a prepared statement. Those states include Western states Nevada, Washington, Oregon and California.

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