San Francisco homes selling $1M+ over asking have surged 1,700% this year

The San Francisco housing market is experiencing unprecedented demand, with homes selling for **$1 million or more above asking prices** at a rate **1,700% higher than this time last year**, according to *The San Francisco Standard*. Coverage highlights a surge in bidding wars, particularly in neighborhoods near tech hubs, as remote work flexibility and an AI-driven economic boom fuel competition among buyers. Major outlets—including *The Guardian*, *San Francisco Chronicle*, and local news station KTVU—emphasize the **‘absolutely bananas’** nature of the trend, linking it to a broader conversion of **vacant office buildings into residential units** to meet housing shortages.

Analysts cite **AI industry growth** as a key driver, though specifics on corporate relocations or wage inflation remain unstated. Watch for potential policy responses, such as zoning reforms or tax adjustments, as city officials grapple with affordability. The trend may also accelerate **adaptive reuse projects** (e.g., offices-to-homes conversions) if demand persists, though no concrete plans have been announced.

Buyers and sellers should prepare for continued volatility in pricing and inventory dynamics.