Hey, if they're happy, I'm happy. An old small house out here like that, probably about 75k. Newer dinky house/garage in a nicer area maybe 150k. Prices are high in CA, esp. those areas; so are costs of living. That's why they come here! Only a state line separates us geographically, but the difference in air quality, natural beauty, room to move, lower costs and far less regulations is huge.

And this is why they say real estate is all about location

Crikey... we don't hardly even have 2 bedroom homes in my area. Certainly would not break $100,000 unless there were some extenuating circumstances, such a location, size of lot, etc. In some cases people would pay for the lot to tear down the home and put up something big.

You buy about 20 of these in our area, live in one and be a full time landlord for the remainder.  

Here in Carmel-by-the-Sea where you can't buy anything under a million, the value is in the lot. If you get even a glimpse of the ocean, the price goes up at least $100,000 automatically. The closer to the ocean, the higher the price.

On an average lot size and no view, I'd put it at around 600k more or less.

WOW! That is shattering news, Fred!

I will say that something like that in Charlotte could easily sell for $200K though - especially in some of our inner-city neighborhoods...or on a large lot in the 'burbs.

As a Bay Area Native, I witnessed ridiculousness like this since 1998.

I left there for what many won't admit to, you have no life there. Traffic, high cost of living, unaffordable housing and the pace went from mild stroll to 100% incline full speed back in the late 1990's. When I visit home, I the stress is palpable.

A good reason not to move to the area.

No not in my market, We are still pretty affordable. But I must admit, these homes are really getting hard to find.

Ken Jones, ASA, SCGREA, CRES nailed this one!

I never think that or think 'like' that. I don't care because I am not in that market. Moby's house just went on the market for 4+M & 'that's nice'.

A Chicago bungalow in the Gold Coast has taxes of $35K plus - what's the difference?

Location, location, location.

The humble abode, placed stratigicly could easly fetch 2 mil. and have a 7 mil structure replace it. 

They are not making new big waterveiew beachfront.

That's why rven those will $400,000 salaries rent instead of buy.

Amazing... I couldn't sleep at night with the thought of how much I paid when there are so many other options available for two million!

In Kenosha, Wisconsin this house would sell for $120,000 to $150,000 Max!

Location, Location, Location.

Sounds like Manhattan.

I must be watching too many detective shows because the only reason I can fathom someone paying that kind of money for that house is if there is a dead body hidden behind a wall that they don't want discovered.  I know it's California but... seriously?!?

It would sell for a lot less here.

I live on an Island in South Jersey. If this was an Ocean or Bay front, a $1million plus would not be unusual. If off the Ocean or Bay, approx. $700K

If this house was close to Cherry Creek or Wash Park, it could go for over a million.

I used to live in Sunnyvale, Ca. Now I live and work in the East Bay. Inventory is painfully low. Buyers often command incomes that are also above those in many other parts of the U. S. Some bring family money with them when the go shopping for a home.

In due time, I suspect that little house will replaced by or remodeled into a much larger McMansion.

In my mind there is something wrong here, but it is California and strange things happen there.

I just posted this on my FB page.  One more reason to be happy to live in Texas

Although I would love to sell home sin that price point, that home here could be from $170,000 to$200,000. I have had 2 buyers who relocated from CA already this year. Funny thing is we did discuss not bringing CA politics to NH. Both had brought it up, i didnt ask and both were leaving due to CA taxes and politics

$125,000

 No..it would not have a $2M rice tag!

Fred Griffin - possible if it was in South Mumbai...

Our prices would be much like your prices in Tallahassee. Glad we don't have that kind of market because no buyers would qualify. 

Value is the meeting of minds between what a buyer will pay and seller will accept on any property in any place.

Fred Griffin This would be good news for my Sister and her Husband. They own a house in Sunnyvale.

We are seeing $500 per sq ft on a busy road, new construction, for a 1000 sq ft 2/2. But that is mind numbing for the home you show, Fred Griffin .

Yep that was pretty numbing, alright...a new record I think. Near the beach this could hit $1.5M or so...maybe $2M if oceanfront. I have past clients that sold a 900 SF for $1.3M in the bay area but nowhere near that record. LA is not much better these days it seems.

Fred,  Those prices boggle my mind..  Cant wrap my head around those amounts~

One toilet not two. 

The agent who sat next to me selling these former blue collar workers entry level homes for $600,000 over asked last year. They are near Westinghouse Electric Submarine engine works.  These flamboyant agents last that long because the younger generation does not want to commute far. You can NOT blame the younger generation all opportunities are there.

The people who inflate the property value are also the executives who refuse to relocate to cheaper housing even in Silicon Valley. It started with people like Steve Jobs who refuse to move Apple headquarters a few miles away from his home to South SJ.

Not in my lifetime.

Depending on location, rarely died anything in California teal estate surprise me.

This is the world of Real Estate where it has the final say with market support...I visited a pocket in CA where it is congested, parking is a problem and houses are old yet there is a demand for anything and for top dollar too

That does sound high, esp for 2 bedroom.  In some towns here, I suppose that could be around $1 million (of course it would have steps LOL).  But, for many places here maybe $500-$750,000, and for less expensive towns maybe $300,000-$450,000.  We are in higher cost of living area. Avg home = $850,000.  In NYC you would not have a lawn, but you'd be paying a lot more money.

While those prices are a bit high for my part of California, in that area I can believe it.

A home like that in my neighbourhood would likely sell for $800,000 +

that's $300k to $310 ....

Welcome to my world.  Yes, it would and they do, all day long. I went to Sunnyvale High School. I do work in Sunnyvale although that is not my primary market.  The same thing is happening all over the bay area. Needless to say Fred Griffin this makes working with buyers on a budget a real challenge. 

I read about this today.  My jaw dropped.

Fred,

Sam Shueh has been sharing this type of crazyness with us.  When we lived in Napa, this type of stuff was happening at the height of the market.  What people are not watching is that the Silicon world is moving away from San Jose, years ago to Oakland, and now to other states.  Carl's Junior had headquarters in the small city of Carpinteria where we live a few mns from Santa Barbara, and they are relocating to Idaho.

A

Location, location, location.  I was just was reading that the Silicon Valley crowd is buying $350 chickens and spending thousands to feed them on salmon and watermelon.  They live on a completely different level than the rest of the nation.  When location is important and money is no object, price will still follow the laws of supply and demand but it will be on steroids.

It might sell around $250-$300,000 around here.

About $139,900 here

Crazy and no, not even close.

It doesn't even have updated appliances! 

Here, that would sell for about 10% of that price.

Flukes happen. Give me three of them closed for an appraisers comp use. Start the song Mr Hooper, Bert & Ernie. Three of these things are just like the other... one of these sales just doesn't belong. 

Thank you for sharing 

Yes, it is my hood, and it is real.

Your right Fred Griffin