The number of Bay Area homes selling for more than $500,000 over the original list price surged in the second quarter of 2021 compared to previous quarters, according to Zillow.
In the San Francisco metro area, 664 homes sold for a half-million or more over the initial asking price in the second quarter, up from 151 in the first quarter and 144 in the second quarter of 2019, Zillow reported. Forty-two San Francisco-area homes went for $1 million or more over the original list price in the second quarter compared to just 10 in the first.
A similar story played out in the San Jose area. Zillow said 296 houses sold for $500,000 or more over the original list price in quarter No. 2 compared to 67 in the first quarter and 29 in the second quarter of 2019. Twenty-five residences went for $1 million or more over asking in the second quarter, which was up from six in the first quarter.
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"With the demands of a homeowner drastically changing due to the pandemic, we saw an unprecedented shift in the Bay Area market," Kenny Truong, founder of Fast Real Estate, said in a statement. "People recognized the inadequacies of their current home because of the increased time now spent at home; the need for more living space, Zoom rooms, and yards became more prevalent. Many San Francisco residents seeking more space and affordability began looking east, driving up home values in those suburban areas. But with an increase in summer inventory, those rising prices may begin to moderate."
Across the nation during the second quarter, 2,244 homes sold for a half-million or more above the original list price, which was more than twice the amount of quarter No. 1, Zillow reported. Homes going for $1 million or more over list jumped 60% compared to the first quarter.
Behind San Francisco and San Jose, the markets with the most homes sold at $500,000 or more above asking in the second quarter were Los Angeles (136), Seattle (102) and Miami (102), according to Zillow.