Facebook’s IPO generated what some are calling the “The Facebook effect” on San Francisco’s real estate market. According to mortgage banker and real estate blogger Julian Hebron, people are trying to buy property in the area as fast as possible in order to not be priced out when the tech boom raises prices.
In his blog, “The Basis Point,” Hebron refers to a recent case where a 3-bedroom, 1-bathroom home received 51 offers and sold for $1.4 million. “That’s the most offers I’ve seen in 10 years. And a different property that week got 23 offers.” Hebron wrote. “When droves of newly wealthy individuals suddenly rush to low-inventory market at the same time, it can drastically impact the market,“ continued Hebron.