A four-bedroom home in a quiet San Francisco neighborhood shocked real estate agents Richard Woo and Holly Phan when it sold for $1 million over its asking price three days after it was listed, KPIX reported Friday.
The home, reportedly located west of Twin Peaks near Mount Davidson, was originally listed for just under $2.5 million but ended up selling for $3.5 million, the agents told KPIX.
“We were all very surprised, because they were not just over – they were way over,” Woo said of the offers.
The 2,400 square-foot home is newly updated and boasts a two-car garage, stunning views and close proximity to hiking trails. But Patrick Carlisle, the chief market analyst for Compass, told KPIX the overbid might be part of a growing trend in not only San Francisco but also the Bay Area region at large.
“It’s been one of the most ferocious markets in history this past year,” Carlisle told the outlet, explaining that “limited housing inventory” has resulted in more competition among buyers, which in turn can cause prices to skyrocket. “Though a fair number of new listings have come on the market, they’ve been snatched up faster than ever – maybe at the fastest rate in history. Virtually every segment in the Bay Area has gone bananas.”
And the size of the abode apparently doesn’t matter. Last month, a 328 square-foot cottage in the Seabright neighborhood of Santa Cruz was listed for $988,000 and ultimately swiped up for an all-cash offer of $1 million after multiple bids. The home has just one bedroom and one bathroom — with a converted living space in the garage — but listing agent Walter Stauss said its prime location close to the beach was likely what led to so many offers.
He added that the housing market hasn’t slowed down at all; he’s noticed many Bay Area buyers are keen on coming down to buy primary or secondary homes in Santa Cruz County.
“The work-from-home thing has a bigger effect than anyone anticipated,” Stauss told SFGATE. “Silicon Valley is a huge job market. The fact that people don’t have to commute anymore and can enjoy the Santa Cruz lifestyle is a big deal. I don’t see that changing at all.”
Earlier this year, dozens of people camped overnight on the sidewalk to purchase newly-built townhouses in Santa Clara costing $1.2 million. Vanguard agent Alan Thurma told SFGATE “the market was hot going into spring,” and the trend has been ongoing as many companies delay their plans to return to the office.
According to the most recent data from the California Association of Realtors, sales of homes in San Francisco County have increased by 27.5%, while median home prices have risen by $72,000 in the last month.
SFGATE Local Editor Tessa McLean contributed to this report.