A condemned home in Fremont just sold for more than $1 million in the latest logic-defying home sale in what has become a stratospheric Bay Area housing market.
Fremont is a city with good schools, low crime and clean streets. And it is now becoming as unaffordable as the rest of the Bay Area.
The condemned house sits on dirt in Fremont’s Mission district, and the structure itself is not worth anything. The property sold for $1.23 million.
Larry Gallegos listed the home in January for $1 million. In one week, he received five offers before closing the sale.
"We’re getting people coming from across the bay saying we can buy this house for a million one, we can pay two hundred thousand over, that’s a good deal for us," Gallegos said. "I advertise cash only because a lender, most lenders, would have a problem giving a loan on a property that needs to be torn down."
The buying frenzy seems to be the new normal in the Bay Area, mainly because the buyers outnumber the amount of homes out there. Buyers are flocking to Fremont because of the schools.
But the market is hot all over Silicon Valley.
Just last week, a burned out home in San Jose's Willow Glen neighborhood went on the market for $800,000, and the realtor has six offers in hand, all well over asking price.
"Nobody can tell the future; nobody can tell if the market is going to drop," said Carmela Morena, who just sold her home for $1.2 million, a $1 million profit she finds unbelievable. "It’s crazy, it’s absurd. I don’t see how people can do it."