With fewer available homes on the market, bidding wars are heating up.

Two California cities top LendingTree’s list of 50 most competitive U.S. cities to buy a home — San Jose, followed by its neighbor to the north, San Francisco. The online lending marketplace ranked the 50 most competitive metro areas in the U.S. based on a buyer’s credit score, down payment amount and how much a buyer shopped around for a mortgage.

“It has a lot to do with the amount of supply in the city,” LendingTree’s Chief Economist Tendayi Kapfidze told Yahoo Finance Live. “We know that in San Jose, it’s a very wealthy area so there’s a lot of competition amongst homebuyers because a lot of people have wealth and can afford homes.”

In San Jose, where the average sale price of a home is $1.2 million, buyers had some of the best credit scores in the country. According to LendingTree, 84.15% of buyers in the “Capital of Silicon Valley” had a…

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