Excerpts From Article Written by Pete Carey – San Jose Mercury News
Two years of tight supply and intense demand have pushed prices for modest Bay Area homes in trendy neighborhoods to mind-boggling heights.
On both sides of the bay, it’s the location that commands the biggest price, even as the amount paid per square foot reached new peaks in more than a third of 155 Bay Area ZIP codes analyzed for this newspaper by CoreLogic DataQuick.
With the price of homes in Palo Alto skyrocketing, Ken Plourde, a 79-year-old retired jazz bass player, decided it was time to sell the home he bought for $35,000 in 1970. “I was sitting on a gold mine,” said Plourde, whose income from music gigs has been declining with his advancing years and changes in the live music business.
The 992-square-foot-home within walking distance of Stanford University was snapped up in one day by a wealthy Stanford graduate in China for $3 million, a price that comes to just over $3,000 a square foot.
“They’re going to flatten it, but what the hell, I can’t do anything about that. Life goes on,” said Plourde. “It’s a fortune to me, for a guy who’s never made more than $30,000 a year.”