SAN FRANCISCO (KPIX 5) – While high prices and inflated bids have become the norm in the Bay Area real estate market, eyebrows rise when a house in San Francisco sold for $ 1 million more.

It’s a newly renovated 2,400 square foot home with 4 bedrooms, a two car garage, and incredible views. The house is in a quiet area of ​​San Francisco near Mt. Davidson, west of Twin Peaks.

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The interior of a house in San Francisco near Mount Davidson that grossed more than $ 1 million. (Lunghi Media Group)

Real estate agents Richard Woo and Holly Phan listed the house for just under $ 2.5 million. Three days later, they would put the sale at $ 3.5 million.

“We were all very surprised because they weren’t just over – they were way over,” said Woo.

“We expected more, a little more, but we weren’t expecting a million dollars,” Phan said.

In current market conditions, it is quite typical for homes in the Bay Area to be sold at or slightly above list price.

A house that sold $ 1 million in San Francisco. (CBS)

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“It was one of the wildest markets in history last year,” said Patrick Carlisle, Compass chief market analyst. “We saw some very spectacular overbids, not just in town but across the Bay Area.”

The housing stock available is still incredibly low across the Bay Area. This creates more competition among buyers, which can drive up sales prices.

“While a slew of new entries have hit the market, they’re being caught faster than ever – perhaps at the fastest rate in history,” Carlisle told KPIX 5. “Virtually every segment in the Bay Area has gone insane. ”

In San Francisco in particular, there has been a huge surge in home sales, according to Carlisle.

“Of course, it involves some people leaving. But the other side of it is that there are still many people who are very eager to live in the city, to own a home in the city, and are willing to pay higher prices than they have ever paid before ” , he said. “Sooner or later, upcycles end. What history has taught us, however, is that it is extremely difficult to predict when upward cycles will end. “

Potential buyers should all have their ducks in a row, according to Woo.

As for sellers?

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“It’s a seller’s market,” said Woo. “Of course the timing is important, the location is important. But the most important thing is to properly prepare the house. “

The post ‘We Didn’t Count on A Million {Dollars} Extra’ – San Francisco House’s Astronomical Overbid Stuns Brokers – CBS San Francisco appeared first on Los Gatos News And Events.