San Francisco Dwelling Offered for $1 Million Over Asking Worth

January 23, 2022

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San Francisco Dwelling Offered for Million Over Asking Worth

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A 2,400-square-foot, four-bedroom home in San Francisco recently sold for a staggering $1 million over asking price, local CBS affiliate KPIX 5 reported last week.

The Lansdale Avenue home was originally listed for $2,495,000 but sold for $3.5 million three days later.

“We were expecting more, a little bit more, but we weren’t expecting a million dollars more,” real estate agent Holly Phan, who along with agent Richard Woo listed the property, told the TV network. The modern two story home features four and a half bathrooms, a two car garage, a sleek kitchen and panoramic city views.

The shocking sale price is the latest sign that the housing market has spiraled out of control during the pandemic, triggered by a combination of rising demand and a severe inventory shortage. Historically low mortgage rates have only helped push home prices higher.

Data from Redfin shows that a staggering 56.5% of homes sold in June sold above list price. That’s a huge jump of 29.6 percentage points from the same month in 2020. “As more and more people gain clarity about what life will be like after the pandemic, they are willing to go well beyond the asking price to find the right fit.” to get hold of,” Daryl Fairweather, Redfin’s chief economist, told Money earlier this year.

In the past, many owners were happy to sell if they received an offer near a desirable selling price. But a seething market means sellers have more power than ever, while buyers are often forced to scramble to bid competitively — and sometimes that means bidding well above list price.

What should buyers expect in 2022?

While stories like the fall of the San Francisco home can serve as guard rails for broader trends, most aren’t quite as dramatic. According to Redfin, the average home sold in June sold 2.6% above asking price — a record high but a far cry from the 40% premium paid by buyers of the Lansdale Avenue property.

A skeptic might also argue that selling a home for well over list price is a sign that the asking price was simply way too low to begin with.

While there are already some signs that the extraordinary real estate landscape of 2021 is starting to normalize, 2022 is not yet developing into a buyer’s market. CoreLogic expects home prices to rise 6%, though that’s much slower than 2021’s 15% growth.

A recent Realtor.com report predicted that the most popular housing markets of 2022 will be concentrated in the Mountain West, Midwest and New England – areas with low unemployment, high job growth and plenty of outdoor amenities.

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