Mike Simonsen, chief economist at Compass International Holdings, noted in a post on X citing the firm’s analysis of MLS data, that there were 44 homes sold in San Francisco<\/a> that closed at a price at least $1 million above the final asking price. It showed the 44 transactions from June totaled over $60 million in total sales.<\/p>\n The June total marked the continuation of a recent trend after April and May each had a little more than 30 sales that closed at least $1 million over the asking price and totaled over $40 million, while March had 20 such sales that totaled about $30 million.<\/p>\n By contrast, from February 2024 through February 2026, some months saw zero home sales that closed $1 million above the asking price, and no month saw more than nine such transactions, which illustrates the rapid intensification of bidding wars in the Bay Area luxury market.<\/p>\n CHATGPT BOOM FUELS A LUXURY HOUSING FRENZY IN BAY AREA<\/a><\/p>\n Dozens of San Francisco homes sold for more than $1 million over their final asking price, Simonsen said. (Tayfun Coskun\/Anadolu via Getty Images)<\/p>\n Simonsen said in his post that the data was, “Absolutely BANANAS” and added that it “may be the most useful data in understanding the 2026 San Francisco housing market.”<\/p>\n Most of the homes sold at $1 million or more above their final asking price were sold in San Francisco’s 94114 zip code, which includes neighborhoods such as The Castro<\/a>, Noe Valley and Dolores Heights.<\/p>\n San Francisco has long anchored the Bay Area’s tech economy,<\/a> and Silicon Valley has surged amid the rapid rollout of AI software serving a wide range of consumer and business purposes. That has contributed to the uptick in demand for luxury homes in the city.<\/p>\n HOUSING AFFORDABILITY UNLIKELY TO RETURN TO MORE FAVORABLE LEVELS OF THE PAST, ECONOMIST SAYS<\/a><\/p>\n The AI boom has fueled a surge in demand for luxury homes in San Francisco. (Getty Images)<\/p>\n Joel Berner, senior economist at Realtor.com<\/a>, told FOX Business that the overall housing market in San Francisco is a “seller’s market” with buyers “competing over a smaller pool of listings, and homes are selling 18% faster than they were last year at this time.”<\/p>\n Across the overall market, the median listing price has actually declined 4.9% from a year ago to $1.137 million, though Berner noted that’s likely due to smaller homes coming onto the market.<\/p>\n “The luxury tiers<\/a> (95th and 99th price percentile) of the SF market are seeing stronger price growth than the median,” he added.<\/p>\n CALIFORNIA TECH LEADERS CHALLENGE PROGRESSIVE POLICIES AS BILLIONAIRES, BUSINESSES FLEE: REPORT<\/a><\/p>\n San Francisco’s housing market is constrained by scarce, expensive land and burdensome regulations. (Justin Sullivan\/Getty Images)<\/p>\n “This kind of uptick in buyer activity is consistent with a cash infusion on the buyer side, which we know is occurring as part of the AI boom and the IPOs<\/a> of several of these companies with presences in the Bay Area,” Berner explained.\u00a0<\/p>\n “Buyers have more money in their pockets, but they’re chasing after the same pool of homes as before as supply has not yet had the chance to meet demand.”<\/p>\n He added that because San Francisco is a “notoriously tough place to build new homes, with pricey and scarce land and high regulatory burdens for builders,” it is “unlikely that a new wave of construction comes to balance the market, so expect seller’s market conditions to continue and prices to start rising significantly.”<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/san-francisco-neighborhood-01.jpg\")
<\/p>\n![\"man](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/man-uses-phone.jpg\")
<\/p>\n![\"San](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/San-Francisco-Golden-Gate.jpg\")
<\/p>\n