In The News

Modest home in San Francisco sells for $1M over ask. Can it happen in Seattle?

Alfred Charles | KOMONEWS.COM

Modest SF house with white exterior black trim.
KPIX-TV in San Francisco reported a story about this home selling for $1 million over its asking price. (Photo: KPIX-TV)

SEATTLE — A modest, four-bedroom home that recently sold in San Francisco for $1 million over the asking price has alarmed local real estate agents in a market that is used to seeing deals close above the price being sought by sellers.

KPIX-TV reported that the house, which has 2,400-square-feet of space, a two-car garage, good views and located in a quiet neighborhood west of the Twin Peaks area, was listed by agents for $2.5 million. The transaction closed at $3.5 million, the television station reported.

Housing stock in the Bay Area is quite limited for a variety of reasons, and given that the market includes Silicon Valley, which is home to corporate offices for several big tech giants and their big salaries for workers, has compounded issues for those looking to buy a new residence.

Holly Phan, one of the brokers who listed the house, told the TV station that even they were surprised when the final bid came in.

“We were all very surprised,” Phan told KPIX-TV. “Because they were not just over, they were way over.”

Sales of homes in San Francisco County rose by 27.5 percent, while median home prices have risen by $72,000 in the last month, according to the California Association of Realtors.

Since many of the big tech companies that call Northern California home have also found their way to Seattle, which is also grappling with tight inventory in its residential market, it raises the question of if local real estate prices can see deals where buyers end up paying $1 million over the asking price.

A recent report by Redfin for a four-week period ending Dec. 5 and covering 400+ U.S. metro areas found that prices for that time frame hit a record high as supply dipped to a record low.