A 640-square foot home in San Francisco was purchased for $37,000 in 1973. That same home hit the market in April for $1.38 million, but has since been lowered to $995,000, reports MarketWatch staffer Daniel Goldstein.
The home is one of 5,000 tiny homes built by the city, relief organizations and the U.S. Army after the 1906 San Francisco Earthquake and has one bedroom and one bathroom.
Still, its San Francisco location is enough to fetch a high asking price. Brian Tran, a realtor in San Francisco with Climb Real Estate, says while $995,000 is pretty steep for a home with just over 600 square feet of living space, (even if it does include a wine cellar) and not much bigger than a hotel room suite, but single family houses in San Francisco are commanding premium pricing, he said. “People say it’s slowing down but I don’t see it,” Tran said. “If people are willing to buy at those prices, then we’re still going to see these listings.” By comparison, homes in the Cole Valley neighborhood list for on average $2.3 million, according to Trulia.com.