Luxury homes in the Bay Area have been selling at record highs in 2021.
Homes in the San Francisco area have drawn so much interest that buyers are getting into bidding wars for the properties, reports SiliconValley.com.
The San Jose metro area saw a dozen homes sell for more than $1 million above the asking price and the San Francisco metro — including East Bay and San Mateo County — featured 36 homes that sold far above the asking price.
Real estate agent Michael Repka says the luxury buyers “are incredibly successful and they’re not used to losing, [so] it just becomes this feeding frenzy.”
The San Francisco metropolitan area had the highest percentage of homes selling 30 percent above the listing price anywhere in the U.S., at 7.4 percent.
“There are available homes, but there’s a ton of demand,” Zillow analyst Nicole Bachaud said in the article. “Demand hasn’t really fallen in any way.”
Record low interest rates and increasing tech salaries have boosted the housing market in the area. Many buyers in the Bay Area have increased their savings due to the lockdown limiting travel and other purchases.
In addition, thanks to the pandemic and an increase in remote work, demand has increased for suburban properties with more indoor and outdoor space.
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[SiliconValley.com] — Victoria Pruitt