An excellent article by Julian Hebron of RPM.
"Three weeks ago some clients wrote a $1.25m offer on a 1400 square foot 3-bed, 1-bath house with original kitchen and bath near San Francisco's Dolores Park. They weren't even close. There were 51 offers. It sold for $1.4m and closed 8 days after offers were due. - Julian Hebron
That's the most offers I've seen in 10 years. And a different property that week got 23 offers.
Two weeks ago, another client offered $245k over list price on a 3-bed, 2-bath Pacific Heights condo. One of the other 9 offers was the winning bid in this $1.6m to $1.9m market segment. That was my client's fourth rejected offer. He's looking at two properties in this price range this week, and the listing agents are reporting similar demand: about 10 serious buyers circling.
That's the norm. It's what some are calling The Facebook Effect on San Francisco real estate.
There are three main themes that set fire to this trend starting in late-2011:
rushing to buy before IPOs set ever higher bars for tech firm valuations
city incentives keep tech companies in San Francisco, amplifying wealth effect
limited housing inventory and rising rents in San Francisco
Let's take them one at a time...