How Upcoming Tech IPOs Could Affect The Bay Area Housing Market

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How upcoming tech IPOs could affect the Bay Area housing market:

reported that in January, home sales in Santa Clara County and the wider Bay Area saw a big drop in what that publication described as “a sharp downturn that accelerated a trend that had developed over the previous eight months.” Specifically, sale volume in the nine-county Bay Area totaled 3,857 units, according to CoreLogic. This was the lowest number of sales that the region has seen in 11 years and nearly 28% below December 2018 levels.

“The fall of 2017 and winter of 2018 saw rock-bottom inventory for the area, though, so it’s hard to imagine they would get any lower,” he says. “So it’s important to note that inventory bounced back from a very low level. Still, all the inventory in the market is finally providing some relief to home buyers throughout the Bay Area.”

However, he warns, that the IPOs will undoubtedly give early employees of the going-public tech companies the cash to potentially use as a down payment. Lockup periods vary from company to company, but most don’t last for more than one year. “While I don’t have a crystal ball, my gut feeling is that new IPOs could pull inventory down a bit," Tucker says."Maybe not to how low it was a year ago, but it will stop the upward climb we’ve seen and eat up a lot of the extra inventory we have online.”Alex Comsa, a Realtor with Coldwell Banker Palo Alto, agrees that the upcoming tech IPOs will result in a massive injection of liquid cash into the Bay Area in 2019.

 

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Source: CNBC - 🏆 12. / 72 Read more »