In the second quarter of 2016, San Francisco-based Paragon Real Estate found that home sales in Oakland closed around 17-percent over asking on average.
“We’re talking about ferocious, even frenzied competition between buyers. The over-bidding has been quite dramatic,” Paragon’s Chief Market Analyst Patrick Carisle told KCBS.
The East Bay city’s housing market has become one of the most competitive in the region.
A major factor in Oakland sales is that the city is still more affordable than San Francisco, San Mateo, or Marin counties, according to Carlisle.
“It’s been under enormous pressure, both in housing prices, and in apartment rents as people in the Bay Area look for affordable housing solutions,” Carlisle said.
Oakland’s median home price has risen $400,000 in the past five years to $644,000, but still remains at about half of the price of an average home in San Francisco.
Carlisle said he expects Oakland’s market to cool off a little in the next year, as San Francisco’s market did in the last year.