San Francisco Bay Area housing market crazy

[David Song]

It seems that 200 k above list is normal here. One house I looked at, in San Mateo, about 70 years old, needs almost a complete rehab. It is located in the worst area of San Mateo. I saw the open house in march, listed for 850 or so. Only 1500 sf. I thought this is overpriced a little. I have 3 properties in the area so I know this market well. It will rent for around 3500-4000. Two month later, the listing agent called me and said the damn house sold for 1.2 million, and wants to list my house. I do not know who bought this sucker. Or maybe the market is going up crazy again 2017?