California home buyers are well aware that purchasing a home likely means also paying well over the asking price. In the major cities around the state, it's simply part of closing the deal.
In fact, the major cities in California are among the worst in the U.S. when it comes to home sales exceeding the asking price during 2017. San Jose and San Francisco ranked first and second nationally, and five of the top 16 markets were in California. More of the same.
Overall, buyers paid more than the asking price in nearly one-quarter (24 percent) of U.S. home sales in 2017, according to Zillow. That's an increase from 17.8 percent five years ago.
San Jose (68.5 percent) and San Francisco (64.5 percent), more than half of all homes went for more than the list price in 2017. Each actually saw a dramatic increase over a five-year span. In 2012, slightly less than half of the homes in San Jose (49.1 percent) and San Francisco (43.0 percent) sold for above asking price.
Sacramento (41.2 percent), Los Angeles (37.5 percent) and San Diego (32.1 percent) also all rank among the top 16 metros in terms of sales exceeding asking price, per the study. Sacramento, a market popular with Bay Area buyers escaping higher prices, underwent a nearly 7 percent increase.
The median amount paid over asking price is especially steep in San Jose ($62,000) and San Francisco ($41,000).
As has been the case in regions throughout California, the combination of limited inventory and overwhelming demand continue to drive the uber-competitive markets.
See the full chart for the metro areas tracked and analyzed in the Zillow study:
