SF’s top 3 overbids all happened in one ZIP code

Where can a buyer get that space in San Francisco? One option: the Sunset District. The three highest overbids this year all happened in one ZIP code: 94116, San Francisco’s Sunset District. If you’ve lived in the city long enough, you may recall the Sunset was once a sleepier neighborhood than closer-to-the-city-center property when it came to real estate. It had a suburban vibe, and prices weren’t as high, nor was demand.

 SFs top 3 overbids all happened in one ZIP code

The popularity and prices in the Sunset have experienced a sharp increase in recent years. Data via Compass. 


Over the past few years though, that’s changed, and by 2021, buyers wanted the 94116 — badly.

Patrick Carlisle, chief market analyst at Compass, said that “the Sunset has consistently been the hottest market in the city in recent years, with the highest overall overbidding percentages. Even though prices have soared, the houses typically range about the median sales price for the city — which makes it relatively affordable, while being in a solid, suburban-ish neighborhood, with active neighborhood commercial districts, parks on two sides and the ocean on the other. During the high-tech boom, it has been very popular with younger families, many of whom worked not only the San Francisco high-tech sector, but down in the Peninsula.”

Redfin reported that the Sunset market is “very competitive” with data showing:

-Many homes get multiple offers, some with waived contingencies
-The average home sells for about 22% above list price and goes pending in about 14 days
-Hot homes can sell for about 37% above list price and go pending in about 12 days

The top three overbids in San Francisco in 2021 all came from the Sunset, and these sales doubled — and even nearly tripled — the average over-asking you see above. 

1. 3228 Santiago St.

 SFs top 3 overbids all happened in one ZIP code

3228 Santiago sold for 81.8% over asking.

Charles Russo, Charles Russo/SFGATE

In early April of 2021, 3228 Santiago St. in San Francisco’s Sunset neighborhood listed at $799,000. This 1,000-square-foot home is an easy walk to the beach. The three-bedroom, one-bathroom abode was sold in less than three weeks, at $1,452,500. That price is 81.8% over asking. 

2. 2543 16th Ave. 

 SFs top 3 overbids all happened in one ZIP code

2543 16th Ave. sold for almost 75% over asking.

Charles Russo, Charles Russo/SFGATE

The second highest over-asking home is at 254316th Ave., which listed in mid-April of 2021. At that time, the asking price for this 1,650-square-foot three-bedroom, two-bathroom home was $1,095,000. In June, it closed at $1.910 million. That’s 74% over asking. 

3. 2370 28th Ave.

 SFs top 3 overbids all happened in one ZIP code

2370 28th Ave. sold for 73.4% over asking.

Charles Russo, Charles Russo/SFGATE

In third place is 2370 28th Ave., a 1925 Spanish-style abode offering two beds and one bath and 1,175 square feet. The home listed in mid-April (which means that each of these homes has not just two but actually three things in common: their high over-asking price, their ZIP code and the month they listed). The original asking price was $995,000. Two weeks later, the home sold for $1.725 million, which is 73.4% over asking. 

And don’t expect the market to cool down anytime soon.

“While the ferocious level of demand tempered since summer, the low inventory and threat of rising rates has kept the market very robust,” Chan said. “Reading my real estate tea leaves, I forecast this trend to continue into 2022.”

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert. 

Article source: https://www.sfgate.com/realestate/article/2021-s-top-3-over-bids-sales-in-SF-and-the-East-16752674.php

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