That’s not even really a listing for a house, if I was interested in purchasing it I would take the land value and subtract the cost to demolish the building to get a fair value.

Nearly all metropolitan housing markets have bad areas; you can find a home for <200k in the South Bronx in NYC, for example.

Yeah, my point was that I doubt a 10% increase in prices is being driven by people shopping zip codes.

They want the actual residence for whatever reason - more than they want the money.

While they want specific residences, it does also have the effect of driving the market up more broadly, because people who would otherwise buy those units must then bid up the next available units.