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They can try to sell it for that much but there's a fair amount of inventory in the area at present, and the housing market has been cooling. My guess is it'll go for less.

Headline should read: "People still trying to flip houses in SV".

Compared to the fact that 1,000+ square foot living spaces are available in other suburban areas for less than $100,000, this is still pretty darn insane, even if it "goes for less".
Im rooting for more than a cooling, more like a sub zero freeze! Houses going from costing unaffordable X 3 to only unaffordable X 2 has no effect on me.
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The lot is a it over 4K square feet, FWIW
That’s almost the size of my house, and it cost 1/10 that.
What kind of salary does it take for a $2.6M mortgage?

What would the property taxes be on that house?

Insane.

For reference, my nice home in Logan Square (the hipster neighborhood) in Logan Square wass $590,000 and is around 3100 sqft with a super nice interior. I'm a software engineer and do great.

At what point to businesses start leaving the bay area due to being priced out? This seems a bit excessive.

List a vacant lot for 7 figures, no one bats an eye. List a lot with a small house on it for 7 figures, everyone loses their minds.
Well duh, it's a whole house in a millionaire city?!

Seems rather cheap. Where I live an 900 square foot apartment can also set you back by $2m. The seven apartments currently listed are all above $1.6m with several having undisclosed prices (if you have to ask then you can't afford it:-)

AND you will top out at 200k as a Software Engineer here as well.