It seems seem like every sale happening in San Francisco at the moment ends up over asking price, with the occasional house now going for more than $1 million over its initial list price. Paragon Real Estate tracked 414 houses and condos sold in the city over a five week period and found that 68% of all sales were above list price. The largest portion of these over-asking sales went for only 1-10% over asking, but two in every five sales sold for 10% over or more. Only 11% of houses sold for less than list price, while 21% sold at asking. With more buyers in the market than homes for sale, bidding wars often ensue and push the price up. Sellers have also contributed to the trend by pricing houses under their actual value or expected selling price in order to incite such bidding wars. With the housing market showing no signs of slowing in the near future, expect over-asking sales to continue to be the norm.
· San Francisco Real Estate Market Dynamics [Paragon Real Estate]
· Last Week's Biggest Sales: $1.31M Over Asking in Noe Valley [Curbed SF]