San Francisco Sees Surge in Homes Selling for $1 Million Over Asking Price

San Francisco’s luxury housing market is experiencing unprecedented competition, with a new Compass report revealing that 144 homes sold for at least $1 million above their asking price in the first six months of 2026. This marks a dramatic increase from just eight such sales during the same period in 2025. June alone saw 44 of these high-margin sales.

The average list price for these homes was $3.8 million, while they sold for an average of $5.3 million. Some properties even sold for double their asking price. This trend is attributed to a combination of high demand from a booming local economy, low housing inventory, and a deliberate pricing strategy by agents to spark bidding wars. According to Redfin, San Francisco is the only housing market west of the Mississippi with more buyers than sellers. While the AI industry’s wealth is a factor, Compass economist Mike Simonsen correlates the surge more with the overall health of the stock market, which has created significant liquid wealth for tech employees.