General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums$2.59 Million, Price of This Tiny Silicon Valley Cottage
'Silicon Valley's housing crisis is so dire that this 897-square-foot Palo Alto home is selling for $2.59 million,'
Business Insider, 7/5/18
A small-yet-charming 897-square-foot residence in Palo Alto, California, could be yours for a cool $2.59 million.
The two-bedroom, one bathroom home, at 128 Middlefield Road, is yet another downsized abode selling for millions in Silicon Valley's overheated real estate market. With the famed Googleplex a mere 15 minutes away, and the hubs of other tech giants also nearby, the home and others like it are in high demand.
The last time this home sold was in 2008 for $899,000, according to Redfin. Now with an asking price of $2,589,000, the home is actually priced below the average for the upscale city of Palo Alto -- sort of. That price tag comes out to $2,886 per square foot, which is $1,430 above the average for the area.
>Click ahead to see what $2.59 million will get for the home's future owners.
https://www.msn.com/en-us/money/realestate/silicon-valleys-housing-crisis-is-so-dire-that-this-897-square-foot-palo-alto-home-is-selling-for-dollar259-million/ss-AAzA0Bk?li=BBnbfcL
Frustratedlady
(16,254 posts)B2G
(9,766 posts)wasupaloopa
(4,516 posts)book a motel if you waited too long because of all the people living in motels.
lapfog_1
(29,228 posts)I try really hard not to double over laughing.
And then we start looking in Livermore or Gilroy or something.
smirkymonkey
(63,221 posts)Is there really anyone dumb enough to pay that price?
JI7
(89,279 posts)but i guess if people are actually spending that much in housing ......
Lee-Lee
(6,324 posts)These areas have very high demand. That calls for very high density housing. Apartments, condos, multistory multi family dwellings.
But if you look at the zoning and development regulations you will find that simply isnt allowed for most of the available real estate. Where it is allowed it is not allowed in the density that makes it profitable because the inflated values mean that lot with that cottage needs to have 6-7 apartments or condos to be worth the effort.
And its that way because the people there want it. They all want their inflated housing prices protected- they paid stupid money and they dont want any policies put in place that will lower it no matter how much it will help people.
DeminPennswoods
(15,290 posts)They work in CA and the prices they pay to buy their flip properties, then sell them for is amazing.
Meanwhile, watching the same show that's based in Atl, renovated homes are going for around 200k +/-.
Hortensis
(58,785 posts)That's in spite of the fixing up, which illustrates clearly enough that replacing or expanding further on this lot is almost certainly not possible under current laws.
bobGandolf
(871 posts)Outlandishly over-priced, is more accurate. But...as long as people are willing....
panader0
(25,816 posts)The miners left and the hippies moved in. The old miner's houses, with hardwood floors and odd angles
sold for very little. My GF's house cost $3,000, the house next door was $850. (The land was leased from the mine.) The hippies gave way to
the artist types, Bisbee became a tourist/arty town, and those houses are now around $100,000.
appalachiablue
(41,182 posts)for multiple reasons, the extremely high cost of housing & living, the lack of mental health care service, other factors.
Jan. 2018, homeless encampment, Anaheim, Ca. in the greater LA area, residents facing eviction.
Vinca
(50,318 posts)Wish I could transport it to the area where I live where it would cost about $175,000.
dembotoz
(16,864 posts)Each kid got an absurd amount of money. Back in St Louis..
She paid off her house and gave it to her daughter.
Had a new house built, paid cash.
Took a couple really nice trips and still has cash left.
shanti
(21,675 posts)look at this, and then drive 90 miles to Sacramento to buy more home for way less. A decent home in Sac is on the market for less than a week before it sells. We have Amtrak that makes daily runs to all parts of the Bay Area, so it's doable for many. My little 2/1 goes for over $200,000 now, and I paid $67,000. I could sell it, but rents here are skyrocketing too, so it wouldn't make good financial sense for me, as my mortgage is less than rent would be. In a couple of years though, I plan to sell and move elsewhere, somewhere cooler (temperature wise). With my luck though, the RE market will have bottomed out again.