$1.7 Million Gets You A Shoebox In Silicon Valley

In many markets, $1.7 million would be enough to buy a luxurious mansion, but in Cupertino, California, it's only enough to purchase a 384-square-foot home.

Homes worth $5 million overlook the one-bedroom, one-bath home at the end of a quiet cul-de-sac in Silicon Valley. The average Cupertino home value is about $3 million, up 10.7% over the past year. A home listed for sale typically is put under contract in about nine days, according to Zillow.

"Enhancing its appeal, the property boasts close proximity to major commute routes, making it ideal for professionals seeking easy access to Silicon Valley's tech hubs," according to the listing on Zillow.

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The price tag may seem high for such a small abode, but six offers have been made on the property.

"It's time to bring out the old cliche', which just happens to be the truth — it's location, location, location," Bay East Association of Realtors Spokesperson David Stark told ABC 7.

Despite its high price tag, it's still the least expensive single-family home on the market in Cupertino, real estate agent Faviola Perez told the San Francisco Standard.

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"The area is so highly sought after," Perez said. "Somebody has just got to be willing to roll up their sleeves a little bit to unlock the whole value of that property."

The 7,841-square-foot lot is likely more alluring than the house that sits on it.

"There's one thing that we don't make anymore, and that's dirt," Stark said. "Residential real estate, particularly in the San Francisco Bay Area, is unique. It's unique because there are so few choices for buyers these days because sellers really like to live here."

Maxwell Dukelow, a Silicon Valley buyers' agent, said an investor or builder could build a 3,200- to 3,600-square-foot home on the lot and flip it for up to $5 million.

"This home has a lot of interest because of the lot size and the neighborhood," Dukelow told ABC 7. "Cupertino is really well known for its school district and great schools, so it drives up the cost of housing in this area."

But rising property prices, increased competition and a tightening housing market have detracted from the appeal flipping houses once had. Last year, gross profits from typical home flips nationwide declined to $66,000, down from $70,100 in 2022, according to real estate data provider ATTOM's 2023 U.S. Home Flipping report.

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