It appears the sky is not the limit when it comes to Bay Area real estate prices.
Sale prices are continuing to hit record highs.
In San Mateo, one house sold for over $2 million and was immediately torn down.
The home is on West Third Avenue. According to Realtor.com, it sold in March for just over $2.1 million.
It turns out the new owner didn’t want it. He just wanted the dirt, all 8,400 square feet of it.
The structure was demolished before escrow closed. The bare lot sits in a picturesque suburban community.
Still, neighbors are a bit dumbfounded by how much a vacant piece of land just sold for.
“Prices escalated so quickly in the neighborhood. We really didn’t know where it would settle, but we were extremely surprised that this raw land for with over 8,000 square feet. We go for over $2 million. That’s a tremendously high price,” neighbor Anna Kuhre said.
Kuhre says she is gratified for what this means for her home’s value.
She says the driver in sales is tech.
“We’re a crossroads city,” Kuhre said. “We have these three freeways that interject here. Everybody’s trying to get to Silicon Valley and this is the way to go. We have a lot of traffic because of it for sure that people need to live and the demand is so high which is obviously reflected in these prices.”
Maureen McLean is a real estate broker based out of San Mateo.
She says another thing driving these prices is the lack of inventory, meaning they aren’t very many homes for sale, which drives up prices.
“There’re 13 houses on in San Bruno for South City the same,” McLean said. “San Mateo has got 50, but San Mateo is a big city, so it should have more than that. We get more than 50 people at an open house, and we’ve only got 50 houses on so it’s bad.”
While these prices are great for sellers, they are terrible for buyers.
But the real estate agent KRON4 talked to says she’s seeing a trend lately that could mean good news for those looking to purchase a home.