San Jose, SF, Oakland lead nation in ‘over asking’ bidding on homes

As the national drought in real estate listings dragged into its 21st straight month, competition among buyers drove prices up once again.

And the fiercest competition was in the Bay Area.

A new report from Redfin shows that 73.7 percent of homes sold above the listing price in the San Jose metropolitan area in June. That was the highest percentage in the nation, followed by the San Francisco metro in the No. 2 spot (70.6 percent) and the Oakland metro in the No. 3 spot (69.8 percent). They were followed by Seattle (62.3 percent) and Tacoma, Washington (52.6 percent).

“Every record in market speed and competition that was set in May was broken again in June,” the report stated.

The Redfin report comes two days after the Mercury News reported on a rash of over-asking bidding in Sunnyvale and Cupertino. In the past month, more than 50 homes in those two cities sold for at least $200,000 over asking. One modest Cupertino house — 1,046 square feet — sold for $660,000 above its listing price.

According to Redfin, San Jose had the nation’s largest decrease in inventory, falling 42.2 percent in June from one year earlier. The second largest year-over-year contraction of the home supply was in Rochester, NY, where inventory fell 29.7 percent. The third largest shrinkage happened in San Francisco, where the home supply was down 26.6 percent.

With so few homes on the market, the law of supply and demand kicks in — particularly in a region like the Bay Area where the job force continues to grow along with the demand for homes. Prices inevitably go up.

The nation’s median sale price rose 7.3 percent to $298,000 in June.

Prospective Bay Area homebuyers weren’t so lucky. Oakland’s median sale price was $719,500, up 9.8 percent year-over-year. San Jose’s median price was an even $1,000,000, up 11.1 percent. San Francisco’s median price was $1,250,000, up 4.2 percent.

The “fastest” markets in the nation — where sales were struck most rapidly — were Denver, CO, Portland, OR and Seattle, WA, all tied at seven median days on market, followed by Grand Rapids, MI (eight days on market), and Boston, MA (nine days on market).

Read the report here.

Photo: A house for sale in Pleasanton. (Courtesy of Redfin)


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