A whirlwind of hotly anticipated tech IPOs is just about to affect the San Francisco Bay Area. This is something that local San Francisco real estate brokers, potential homeowners, and retailers have been expecting for quite a long time. Individuals and companies in real estate have clear expectations of how the real estate market will react to these IPOs.
San Francisco Current Real Estate Trends
Bay Area’s real estate market has generally been quite robust. For a considerable length of time, it has been known to be among the most costly and aggressive real estate markets in the nation. As of late, however, the market trends have moved somewhat towards more mellow grounds. Since December 2018, the market has reached its all-time lowest in the past eleven years. However, this mellow trend is more than likely going to change. The San Francisco real estate market is about to skyrocket. That is because tech IPOs are about to enter the market.
How IPOs Affect Real Estate Markets
This expectation is due to past experiences with tech IPOs. Facebook stocks were made available in 2012. Consequently, the home estimations of Facebook workers shot up to 20.9% within a year; it was a sharp contrast to the 16.8% rise for the remainder of the San Francisco Bay Area. This meant a $29,800 contrast in real estate values within a year of Facebook stock availability.
What to Expect in the Real Estate Market of San Francisco
The tech industry is not showing any signs of slowing down. Therefore, in 2019, the IPOs will likely have a big impact on top-of-the-line real estate properties in the Bay Area. The impact of the tech IPOs will likely keep progressing for the next several years. That is because numerous new workers recently joined the tech businesses; consequently, over the next few years, their stocks will continue to vest.