The number of homes selling for huge sums over list price has risen rapidly since the start of the year – and San Diego is part of the trend.
A recent Zillow.com analysis found that nationally, in the second quarter, 2,244 houses sold for $500,000 or more over their original list price. That’s more than twice the number in the first quarter of 2021.
Those selling for $1 million over list were up 60% over the prior quarter. The share that sold for 30% or more over list rose from 1.1% to 1.7%.
In San Diego:
- Six houses sold for $1 million or more over the initial list price, compared to four in the first quarter;
- 31 houses sold for $500,000 or more over the original list price, compared to 16 in the first quarter, and
- 0.8% of homes sold for 30% or more above the first list price, compared to 0.5% in the first quarter.
San Francisco leads the 50 largest U.S. metros in the share of homes sold for 30% over their list price or higher at 7.5%.
Buffalo, NY, where 6.7% of homes sold for more than 30% over list, follows, then Austin at 5.5%.
California topped the list of markets with the most homes sold for half a million or more over the asking price in the second quarter.
San Francisco far outpaced other markets with 664, followed by San Jose, with 296, and Los Angeles, at 136.
Seattle and Miami, tied at 102, came next.
“Our markets have seen an explosion in growth since early 2020,” said Jake Melendez, chief data officer at Active Realty. “Many of our sellers are seeing over 60% of a return on their investment from purchases just several years ago, while our buyers are locking in lower interest rates than we’ve seen in decades.”