A fire-destroyed house in Walnut Creek, Calif., sold Thursday for $1 million, about $150000 more than the median home price last month.

The final transaction price is also much higher than the listing price. The two-story, four-bedroom house was initially priced at $850000, but soon sparked a bidding war and attracted the attention of confused onlookers.

The real estate agent responsible for selling the house, Melinda Byrne of Key Realty, said that while prices in California may be more expensive than real estate in other parts of the United States, there is nothing unusual about the sale of the house.

"I'm really surprised because it's a nice house for me," Bourne said, referring to the media attention the house has attracted. "We sell houses that need to be repaired on a regular basis."

She was contacted by nearly 100 interested buyers just three days after the house was put up for sale, Bourne said. During these three days, she received eight quotations and then five more.

Although the house has been damaged and the garage, laundry and family room have all been burned down, the skeleton is still there, Bourne said. She says experienced speculators can rebuild the house within six months without tearing down the original skeleton.

In fact, Bourne said, it was an experienced speculator who eventually bought the house, who planned to redecorate the house and put it back on the market and sell it at a higher price.

Most speculators have their own teams of contractors, architects and designers, who can usually complete the renovation within four to six months, she said.

"as you know, it's a handsome profit in California, because even if this person invests $500000 [renovating], he will get a huge return on it," Bourne said. "

Walnut Creek, a suburban community in the San Francisco Bay area, is less than an hour's commute from San Francisco and is famous for some of the best schools in the area. During the COVID-19 pandemic, demand for housing soared as residents wanted to move away from densely populated urban areas and into more spacious homes. The average selling price of local homes is more than 20 per cent higher than last year, according to Byrne's real estate company.