Let the bidding begin.  

A burned-out house in San Jose’s Willow Glen neighborhood is being listed for $800,000.

It is the latest example of the craziness that is the Silicon Valley real estate market these days.

A sign outside the home says it’s a “Willow Glen Charmer.”

But a peek through the chain link fence surrounding the property reveals there is actually no house. It more or less burned down a while back, but it will soon be listed anyway for a reported $799,000 to be exact. 

It won’t be on the market long, says Santa Clara County Realtor Association V.P. Doug Goss.

“A home like this would typically go for $1.1 [million] or $1.3 million,” Goss said. “In this area, we have contractors and investors looking for places like this to just tear down and rebuild.”

That’s a pretty good way to go when the median price for a single-family home in Santa Clara County is about $1.4 million, if you can even find one.

“Right now, home inventory is at a historic low,” Goss said. “We have only about 750 single homes available in the entire county.”

Try to imagine a new home on a hard-to-find 5,800-square-foot lot. 

It’s at the corner of Bird and Minnesota in Willow Glen.

Because of its proximity to virtually everything, it is a red-hot market right now.

“Location, location, location,” Goss said. “Willow Glen is a hot market right now.”

Because of its proximity to the San Jose Diridon Station, where Google is coming in, and it’s close to downtown and Highway 87.

Goss expects this property will sell fast, for cash, and there will likely be multiple offers.

Can prices get any higher?  Where does it end?

“Who knows,” Goss said. “This appears to be the new norm. Lack of inventory, strong demand, the economy is doing well. Everybody wants to be here.”

And another “Willow Glen Charmer is just three doors down from the burned-out place.

It recently sold for $1.6 million.