In Southern California’s competitive housing market, a damaged bungalow in Monrovia is attracting surprising interest despite being only half a house. The home, partially destroyed by a giant pine tree in May, is listed for $499,999. While you might think this is a tough sell, the property has received multiple offers due to the area’s limited housing supply.
The one-bedroom, one-bathroom property, despite being just 645 square feet, has caught the eye of numerous buyers. Some even envision adding 1,000 square feet, transforming the damaged property into something much larger. Realtor Kevin Wheeler shared that potential buyers were initially trying to secure the property at a lower price, offering around $250,000 or $300,000. However, market comparisons for similar properties in Monrovia put the value at $500,000, justifying the asking price.
The older owners, understandably, decided to sell the property instead of investing in costly repairs. They simply didn’t have the energy or resources to restore the home themselves, opting to let someone else take on the project of rebuilding or expanding.
This demand for homes comes at a time when affording even a starter home in the U.S. is increasingly difficult. A new Redfin report reveals that homebuyers must earn nearly $80,000 annually to afford a typical starter home, about $20,000 more than the average household income. This affordability gap has intensified competition in cheaper markets, with homes receiving multiple offers. Buyers are even getting creative with their offers to stand out and secure a deal.
Despite the challenges, there are some good signs. The number of starter homes for sale has increased by almost 20% compared to last year, and while mortgage rates are still high, they’re starting to come down. Home prices are still rising, but at a slower pace, offering a glimmer of hope for those trying to buy. Right now, even a half-destroyed house in California is considered too tempting to ignore.
This situation highlights the intense competition in the housing market and the desperate need for more affordable options. As the housing crisis continues, it’s clear that even a damaged property can be a hot commodity in the right location.
