Watch CBS News

'Overbid Madness' Strikes San Francisco Real Estate Market, Home Sold $600K Above Asking

SAN FRANCISCO (KPIX 5) -- Realtors are using the words "overbid madness" to describe what's happening in San Francisco's housing market. One case in point is a home that was sold hundreds of thousands above the asking price.

Shrouded in fog, and swimming in cash a two bedroom, modern home in the Glen Park neighborhood was just snapped up for $2.1 million.

"That's really unbelievable," said Kendra Mastain of San Francisco.

The sleek home on Bosworth sold for $600,000 over asking price.

"I'm a RN, I make a decent living," said Tammy Elder of San Francisco. "I don't ever picture myself buying a house here."

Arrian Binnings of Christie's / Pacific Union told KPIX 5, "That wasn't even our highest offer."

Binnings said it's supply and demand, with most homes for sale commanding 12 percent over asking.

"That is a red hot market," he said.

For sale signs a rare sight in San Francisco. Real estate agents said if new property stopped coming on the market, San Francisco would run out of homes for sale in just five weeks.

There were eight offers on the home, but only one person can win. It has turn San Francisco's real estate market into contestant's row on The Price Is Right, making the losing bidders desperate.

"Someone who's lost out on eight or nine homes. They've put in offers, they've come in second or third place every time and finally they've reached that point where like, this next one, I'm going in guns blazing," Binnings said.

Binnings believes there is an end to the real estate crazy train. "The type of growth we're seeing right now is not sustainable year over year, I expect to see these types of prices tame down a little bit," he said.

The same house was for sale in 2009 for about the same price. It did not sell after 84 days and was taken off the market.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.