A home in San Francisco’s Presidio Heights neighborhood sold last week for $10 million over its initial asking price, a record for the city.
The eight-bedroom, seven-bathroom home on Cherry Street overlooks the Presidio on one side and boasts a three-car garage. It was recently put on the market with an asking price of $18.5 million. It sold for $28.5 million.
The agent connected to the sale said the buyer is a local family but would not disclose who they are.
According to figures from Compass Realty, nine out of 10 homes in San Francisco right now are being sold for well over asking price, and many of them are all-cash sales.
Realtor Rene Perez said it’s a great time to be a home seller in the city. But it’s not great for everyone, especially those hoping to sell their current home and upgrade to a bigger home.
One of Perez’s clients was planning to do just that but quickly realized they had to change plans.
“As my client was looking into those upgrades, they were realizing that they won’t be able to afford to upgrade because they were going to get outbid,” Perez said.
The sky-high home sale prices have also resulted in a spike in the cost of rentals. For renters, Perez said it may be a good idea to lock in a monthly rate right now.
“If you’re a month to month, you might want to talk to a landlord about what their intent is,” Perez said. “Say, ‘Hey, I kind of want some certainty. Let’s do a renewal.'”
With Anthropic’s IPO announcement Monday and the expected influx of stock share millionaires, home prices in the city are likely to keep climbing.
Redfin chief economist Daryl Fairweather said one possible side effect could be more low to mid-range owners deciding it’s time to get out of the Bay Area market altogether.
“They could take all of their equity and buy a home in cash virtually anywhere else in the country outside of California and probably have money left over,” Fairweather said. “I think there will be people who decide that this is the right time, especially Baby Boomers who are looking at retirement anyway.”
