The Bay Area housing market is booming. It has been so competitive in fact, that houses are selling for well over the asking prices. These aren't cheap houses by any means.
"Back in September, a modest ranch house sold in Sunnyvale for $782,000 over its asking price, signaling that the Bay Area housing market was even crazier than it seemed," according to National Mortgage News.
"That sale was extreme: The buyer paid $2,470,000 for a four-bedroom, two-bath house — less than 2,000 square feet — that had listed for $1,688,000. But the deal turns out to have been an over-the-top version of what has become the new normal in the Bay Area, where home buyers are more likely to pay over-asking prices than anywhere else in the nation, according to a report from Zillow."
It doesn't stop there either, according to the report, 68.5% of homes in the San Jose metro sold for over the asking price with a scary median overpayment of $62,000. Meanwhile, San Francisco saw 64.5% of homes selling for over the asking price.
"The low housing supply has become a national phenomenon, forcing home prices up almost everywhere," according to NMN.
"Between 2012 and 2017, the share of homes selling for above the asking price in the United States rose from 17.8% to 24.1%. The median amount paid over list last year was $7,000."
As you can see the national median amount paid over the listing prices are sell under that of the Bay Area metros. It has been one of the most unprecedented years in terms of homes being sold over the listing prices, especially when it comes to the Bay Area.
To learn more about this incredible sales, click on the image above.