Courtesy of SiliconBeat.com, 4/3/2014
The tech boom has pumped up Bay Area real estate prices so much that $1 million will get you a fixer-upper — if you can find one.
OK, that may be an exaggeration, but not by much. In Palo Alto, $1 million gets you a nice condo. Over-asking price bids on homes priced at more than $1 million are common in other hot spots like Cupertino, Sunnyvale, Mountain View and Menlo Park.
The online real estate site Trulia has analyzed this, coming up with the following: In San Francisco, the Peninsula and the East Bay, 43.5 percent of the homes for listed sale are priced above $1 million. In the South Bay, 23.7 percent are.
In “pricey” U.S. markets like the Bay Area, “you’ll need more than a ‘one’ in front of six zeros to buy a mansion,” Trulia chief economist Jed Kolko reports.
The typical million-dollar home is 1,489 square feet in New York City; 1,774 square feet in San Francisco and the East Bay; and 2,161 square feet in the South Bay.
But in 68 of the 100 largest metro areas, $1 million homes are less than 5 percent of the total market. In Colorado Springs, $1 million gets you 6,023 square feet. In El Paso, it gets you 6,908.
“That means the differences in million-dollar homes across the country are so big, you could actually fit million-dollar properties from New York, San Francisco, Honolulu, and Miami together inside a million-dollar mansion in Birmingham and still have room to spare – that is, if you couldn’t find any better use for 8,000 square feet,” Kolko writes.