Facebook’s Impact on Real Estate
Palo Alto, California, is seeing some very substantial activity in their real estate market as a result of Facebook’s impending IPO (Initial Public Offering). Huge price influxes have started occurring since the beginning of the year, up to 10%, as a result of Facebook’s operating headquarters being located in Palo Alto.
Part of this influx is a result of investors seeing the opportunity for the area to boom, creating a very high demand for properties in the area, resulting in these significant increases in price. Real estate agents are even recommending to their clients to wait to list their home until Facebook goes public, as this is predicted to largely increase home values in the area. And, really, who wouldn’t when the medium price for a single family home in the area is estimated at nearly $2 Million.
One impending factor is that Palo Alto’s inventory is reported to have declined by 57%, a very scary number, resulting in predictions that should the IPO not go as well as planned, the Palo Alto market may in fact crash, which is the last thing anybody wants out of this. Did anybody else think that Facebook would ever have a legitimate impact on the real estate world? Join the conversation with us on Twitter.
photo courtesy of birgerking