Facebook is finally going public, and that’s good news to many real estate professionals in Silicon Valley. As the hype has been building regarding the Palo Alto giant’s initial public offering, many sellers have held off until the flood of Facebook millionaires hits the market in the next few weeks.
The last few months have been tough for Silicon Valley real estate professionals. There has been an extreme shortage of properties for sale because many sellers have indicated that they want to wait until the Facebook IPO launches, so that they can be a part of the feeding frenzy of fresh-faced millionaires looking to spend their newly found money. Look for a lot of sellers to test the waters in the next few months to see what they can get for their home.
This region has without a doubt been the hottest place for real estate in the United States for a while now. Just how hot is it? Homes in Silicon Valley are selling at a brisk pace and getting multiple offers, with some homes getting as many as 50-60 offers in a weekend. Tear down houses that are less than 1,000 square feet are selling for over $1 million and getting multiple offers. The same size house that sells for about $200,000 in Seattle or Los Angeles is selling for more than five times that in Silicon Valley. It’s an amazing phenomenon, but is it another bubble? Most experts don’t think so.
The Silicon Valley has been home to the world’s tech industry for many years. With tech giants Google, Apple, HP, and Facebook calling the area home, plus many other mid to large players in the region as well, it will be a hot hub for real estate for some time. Silicon Valley has become the mecca for tech startups and talented programmers.
The only problem with the region is that with prices going up so fast, it’s pricing out entry and mid-level executives. This is good for communities just outside of Silicon Valley,since it will cause a rush in real estate there as well from people who work in the Silicon Valley, but can’t afford to live there. All in all, it’s could be a record-breaking year for real estate in this region of Northern California.
The Facebook IPO could do more than put more money in people’s pockets. It may cause a surge in real estate prices in Silicon Valley. It already has done this, but look for prices in this region to go much higher by year’s end. This is one place in the U.S. that is not feeling a housing slow down. It’s actually the exact opposite here. Give us your thoughts below!