FREMONT – There are holes in the roof, the ceiling falls in, and the water trickles down along all sides of the building. Nevertheless, it is a house in Fremont in the U.s. state of California after barely one week on the market sold for a whopping $ 1.2 million. The situation is so shocking that the people on the streets to protest.
Those who are looking for a cosy home that has recently been renovated, in the building in Fremont nothing to do. “Do not enter without a realtor, the property is already empty for years and is dangerous”, it says on the website to read. The building will have two bedrooms and three bathrooms, the construction is doomed to be demolished. Only the plot of 875 m2, offers an interesting prospect for buyers, that is after the huge sum of money would have to there apartments to build.
And still did the buyers from the very first minute bid after bid. “It stopped not more”, responds a real estate agent Larry Gallegos of Better Homes and Gardens to the Mercury News. “Non-stop, they called or emailed them for the building. From early in the morning until late in the evening. Even now, now already sold.” For a price tag of a staggering 1.23 million dollars, about a quarter more than the asking price.
And that is an important sign on the wall: the housing market in the Bay Area is plagued by extreme inflation. That is to say that the prices of houses is strongly on the rise, and a dollar is worth less than before. By that evolution is the Bay Area the most expensive location in the United States. That is because there are numerous people from within and abroad, like in the neighborhood of San Francisco want to come, in the hope of successful jobs and good schools for their children.
So intense, inflation brings a lot of problems with it. On the one hand means that, in general, that people of their earned money is suddenly worth less and less and that they are not able to even with an astronomically high amount, a decent house to buy, for example. On the other hand, it is also for buyers negative because when prices are stable again, they will make their purchase never be able to sell at the same price, because the actual value is less.
The local residents are on the street to this huge inflation and the government asking to intervene.