The price of coastal city living has officially gone awry with one “broken-down” Palo Alto property selling for nearly $2.6 million.
Don’t be fooled–the house may appear to have decent curb appeal and a charming exterior, but the inside is reportedly in “poor condition” and has been dubbed a “teardown.”
It is clear that the value is in the land, not the house.
Curbed San Francisco reports: “Complete with hardwood floors, a brick wood-burning fireplace, and exposed wood beam vaulted ceiling, the well-worn abode was lovely in its own right. But the real selling point here was the lot, approximately 7,500 square feet of it, and the location, four blocks from California Avenue and around the corner from Peers Park.”
“In all likelihood, this home will be torn down for a new construction.”
The 80-year-old tiny house boasts a measly 908 square feet of living space and originally appeared on the market in February with an asking price of $1,927,000.
After being on the market a few short months, the 280 Stanford Avenue home recently sold for $2,555,000, a staggering $623,000 over the list price.
However, consider the fact that a house in much worse condition and only 760 square feet, located near the Stanford Avenue property, sold for $1,315,000 in 2016, reports CNBC.
So, what does this tell us? Both examples illustrate a disturbing trend: an affordable housing crisis taking place in America, particularly, the over-inflated real estate bubble that is Silicon Valley.
The fact of the matter is that even if you make well over six figures, residents in the San Francisco area still find it increasingly difficult to afford housing and many of them are reportedly “scraping by” to survive.
One woman interviewed by The Guardian claimed that although she and her partner make a combined salary of over $1 million, they still can’t afford a house in the Golden Gate city. “This is part of where the American dream is not working out here,” she says.
In the last two months, we’ve reported on the Twitter employee earning $160,000 a year who says he’s just scraping by in San Francisco, the Facebook engineers earning between $100,000 and $700,000 a year who asked Mark Zuckerberg to subsidize their sky-high rent, and the fact that Google employees could buy five houses for the price of one — if they left Silicon Valley.
— San Francisco News (@SFnewsnow) April 28, 2017
— San Francisco News (@SFnewsnow) November 24, 2016
— Nieko Gloss (@NiekoGloss) October 14, 2015
— San Francisco News (@SFnewsnow) April 8, 2015
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