Silicon Valley's housing crisis is so dire that this 897-square-foot Palo Alto home is selling for $2.59 million — take a look inside

The two-bedroom, one-bathroom home, at 128 Middlefield Road, is yet another downsized abode selling for millions in Silicon Valley's overheated real-estate market. With the famed Googleplex a mere 15 minutes away and the hubs of other tech giants also nearby, the home and others like it are in high demand.

The last time this home sold was in 2008 for $899,000, according to Redfin. Now with an asking price of $2,589,000, the home is actually priced below the average for the upscale city of Palo Alto — sort of. That price tag comes out to $2,886 per square foot, which is $1,430 above the average for the area.

Take a look at what $2.59 million will get for the home's future owners.

The blue home, located at 128 Middlefield Road, looks cozy and quaint from outside ...

The blue home, located at 128 Middlefield Road, looks cozy and quaint from outside ... BusinessInsider

... and it's just as cozy inside. The front door opens up to a living room with a fireplace.

... and it's just as cozy inside. The front door opens up to a living room with a fireplace. BusinessInsider

The home was built in 1924 and has been remodeled over the years to keep up with the times.

The home was built in 1924 and has been remodeled over the years to keep up with the times. BusinessInsider

There's a unique antique Wedgewood stove in the kitchen.

There's a unique antique Wedgewood stove in the kitchen. BusinessInsider

Near it is a small dining area ...

Near it is a small dining area ... BusinessInsider

... and a bay window.

... and a bay window. BusinessInsider

The bungalow has two bedrooms, both with lots of natural light.

The bungalow has two bedrooms, both with lots of natural light. BusinessInsider

The one bathroom in the house is decked out in modern tiled floor and clean, white finishes.

The one bathroom in the house is decked out in modern tiled floor and clean, white finishes. BusinessInsider

A garage was converted into an office area, so owners would have to park elsewhere. The trade-off is that there are skylights and a small seating area in the converted area.

A garage was converted into an office area, so owners would have to park elsewhere. The trade-off is that there are skylights and a small seating area in the converted area. BusinessInsider

Through a pair of french doors is the private backyard.