Austin Klar breaks down why San Francisco list prices are meaningless. Single-family homes sold 17% over asking in the past three months, with homes above $2.4M going $400K+ higher. One house listed at $4.4M sold for $8.2M.
This is the single most infuriating and confusing thing for buyers about San Francisco real estate right now. It's that in most cases, the list price means absolutely nothing. It's just a marketing gimmick designed to get you into the door rather than indicate to you in any way what the house might actually be worth. On average, single-family homes in the past 3 months have sold about 17% over their list price. And when the list price is over $2.4 million, that's over $400 grand. Look at it another way. The average active home price is down about 18% over the past 3 months compared to the same 3 months last year, but the average sold price is up about 28% over that time period. You wouldn't have that much disparity if the list price was in any way indicative of actual market value. That's why you have homes like 212 Spruce that listed for about $4.4 million and sold for $8.2 million. 139 Cherry listed for $5.25 and sold for $6.88. 2684 Green listed around $8 million and sold for just shy of $10 million. It's happening all over the city. It's happening at every price point. So the sooner you stop anchoring yourself to list, the better off you'll be in this market. Follow me for more San Francisco real estate.
