PALO ALTO, Calif. (KTVU) - Bay Area real estate prices continue to climb as an 897 square foot home in Palo Alto was recently listed for nearly $2.6 million.
The home, built in 1929, is described on Redfin as a "charming bungalow," that's a stroll away from downtown Palo Alto.
The modest home features two bedrooms and one bathroom. It also has a back cottage that's about 200 square feet. The home along - with its cottage - sits on a 4,361 square foot lot.
The listing is gaining attention and has many wondering who can afford these new heights. Earlier this month a study by The Bay Area Council showed 46 percent of Bay Area residents planned to leave in the next few years.
“This is the trend we’ve been observing. Two years ago, it was 34 percent and last year it was 40,” said BAC president, Jim Wunderman.
Laura McCarthy with Alain Pinel Realtors is the listing agent for the pricey bungalow. She tells KTVU although there's been an influx of stories of people leaving the affluent Bay Area, there are still more buyers than sellers. "There will always be attrition and the movement is across all price ranges-homeowners cashing out. I’m listing homes from sellers moving to Singapore, Charlotte and North Carolina. The multiple offers validate more buyers than sellers. Buyers have to have wealth to be able to afford our home prices," said McCarthy.
Despite some longtime residents moving, the Silicon Valley continues to draw people from all over the world. "The US is still a safe investment in comparison to the rest of the world," says McCarthy.
McCarthy believes we'll continue to see the tech industry impact real estate prices. "With Google buying up land in SJ areas like Blossom Valley, Almaden, Cambrian, Campbell, Willow Glen will most likely have larger increases in home values."
The Middlefield Road bungalow is set for an open house Saturday from 1:30 to 4:30 p.m.