It’s no secret real estate prices have been sky-high throughout 2021.
So it should be no surprise that a home in Santa Cruz, California — a coastal city a little over an hour away from San Francisco — sold for over $1 million in late-October.
But this “vintage bungalow” — as the home is listed on Realtor.com — isn’t your typical three-bedroom, two-bathroom family home you might expect from a million-dollar property in northern California.
Instead, the $1,025,000 114 Mountain View Ave house is literally a tiny home: It stands at a whopping 328 square-feet.
On the bright side, the home sits atop a 3,833-square-foot lot.
We’ve seen tiny homes that range from a $21,000 smart unit (shown below) to a $129,000 home on wheels.
Source: Insider, Insider
And in early November, a roughly 250-square-foot home in a wealthy suburb outside of Boston sold for $315,000, well under its $450,000 asking price.
But unlike the tiny home in Massachusetts, this Santa Cruz property sold for well above its original $988,000 listing price, the listing agent Walter Stauss told Insider.
The home — built in 1948 — last sold for $250,000 in 1999. Before that, the previous owners purchased the home in 1986 and 1983 for $116,000 and $80,000, respectively.
If you’re wondering how such a small home could have sold for such a hefty million-dollar price, just take a look at the housing market in the US.
The market has been on fire throughout 2021 as demand continues to outpace supply.
The median sale price of homes in the US has jumped roughly 20% over the last year, and looking ahead, Goldman Sachs predicts this price could continue to shoot up another 16% in 2022.
Santa Cruz, California isn’t immune to this increase in housing prices: the cost of homes in the coastal city has already surged 32.9% since 2020, according to data from GoBankingRates.
And the tiny home is located in Santa Cruz’s already expensive Seabright neighborhood, a nice stroll away from restaurants, downtown, a boardwalk, and the ocean.
According to Realtor.com, the median sale price of houses in the neighborhood is around $1,260,000, making this tiny unit cheaper (and likely smaller) than most homes nearby.
Tiny homes have been all the rage during the COVID-19 pandemic, but Stauss doesn’t peg the house’s high price to this little living trend.
In fact, the listing never made a big fuss over its trendy size.
Instead, the final buyers — who made a cash offer that beat out five other bids, Tessa McLean reported for SFGate — were attracted to the home’s non-cookie cutter “charm,” according to Strauss.
Let’s take a look around 114 Mountain View Ave to see how the tiny home managed to appeal to several buyers with deep pockets. Just be prepared for a short tour — the house isn’t exactly giant.
The property has a bedroom, kitchen, living room, and deck that looks out over the backyard and its shed.
There’s also a garage-turned-room and bathroom, but this space isn’t included in the listed 328 square feet.
The home may be small, but it has all the minimum amenities, plus a sizable backyard.
The kitchen has an oven with a gas range, sink, refrigerator, and plenty of counter space and storage.
There’s no separate dining room, but the living room can double as a dining space.
The two bathrooms both have the basics, like a place to shower, a toilet, a mirror, and a sink.
And the main home’s living room and bedroom both have entrances to the deck, which is perfect for entertaining guests during a sunny California summer afternoon.
According to Realtor.com, this $1 million property is 17.9% cheaper than its surrounding homes.
Its new owners clearly decided its “charming” size in a prime location was a “steal” for the price.