"As the nationwide housing market remains sluggish and has flipped largely into a buyer's market, California continues to buck the narrative. While most of the country's buyers are now paying below asking price for a home, in three of the Golden State's largest metro areas, the average buyer pays more than the asking price, a new analysis showed. Only four U.S. cities had buyers routinely purchasing homes above asking price, according to a new Redfin report."
"San Francisco home buyers are paying the highest premium in the country, with sales reaching an average of 3.8% more than the list price in 2025. San Jose wasn't far behind, taking the third spot on the list, with buyers coughing up 2.3% more on average. Oakland came in fourth, paying an average of 1.3% more than the list price."
"Florida, meanwhile, had the biggest "discounts" on sold homes. West Palm Beach home buyers paid 9.3% less than the list price on average, while Fort Lauderdale, Miami and Tampa had discounts of between 7% and 9%. Austin, Texas, buyers are also paying below list price on average, at about a 7.1% discount. Fairweather said the comedown from the pandemic housing boom is more strongly affecting real estate markets outside California, causing bigger swings in prices and larger discounts."
Nationwide housing has shifted into a buyer's market, but California metros continue to see premiums above asking. San Francisco led with an average 3.8% premium in 2025, followed by Newark, San Jose, and Oakland with buyers paying above list price. The Bay Area premium is associated with an artificial intelligence boom, return-to-office trends, and frequent underpricing tactics that spark bidding wars. MLS data analysis shows markets outside California experiencing larger discounts as the post-pandemic housing boom cools, with Florida metros and Austin posting average discounts roughly between 7% and 9%.
Read at SFGATE
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