Million Dollars Gets You What?

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Just how much house can you get for $1.45 million in Silicon Valley? Well, it depends on where you’re looking.

But just to give you an idea of the pricing in this market – in Palo Alto, one buyer recently picked up a 1,172-square-foot, 3-bedroom, 1-bath house for $1.45 million. Yes, one bath. For $1.45 million. And they’re likely going to tear it down and build new. Welcome to Silicon Valley.

I’m hearing from local Realtors that the housing market here is beginning to resemble the housing scene during the dot.com boom in 1999/2000.

Inventory is low. Prices are climbing compared to just six months ago. Houses are selling fast and for above asking price, after heated bidding wars.

For sellers with decent homes in good school districts, the question doesn’t seem to be, “Will I be able to sell my house?” It’s more like, “How quickly can I sell my house and how much more above asking should I expect?”

Just a sample of some of the stories I’ve heard:

— A house in the Cambrian area of San Jose recently got 20 offers after being on the market for one week.

— Another house on the San Jose/Los Gatos border sold for about 10 percent above the list price after getting seven offers less than two weeks on the market.

— Houses all over Palo Alto are selling for as much as $200,000 above list price, even teardowns.

For more examples of homes selling for way above their asking price, check out our slideshow to the right. And to read more about this frenzied housing market, read my article in this week’s edition of the Business Journal.

Mary Ann Azevedo covers real estate for the Business Journal.

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