Reply
Silver Contributor
4rent
Posts: 541
Registered: ‎01-28-2011

If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

Contributor
buyer007
Posts: 41
Registered: ‎10-26-2009

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

[ Edited ]

It is overhyped. Let's look at the facts:

 

1. Average FB employee is single and around 26 years old. Unlikely they are looking to spend on buying a house. Perhaps a condo in SF

 

2. Let's assume 2,000 FB millionairs. Of those, approximately 75% are young and single and will not buy in SV. Of the remaining 25%, maybe 50% are married with kids and want to buy in SV. Of those, maybe 50% will want to buy a house in the 750k-1.5M range. Of those, perhaps 50% might alctually have vested options. So, you are likley looking at less than 100-200 buyers.

 

My guess is that a lot more sellers have held back their house hoping to sell to FB millionairs. So, this really means a net increase in inventory that is only partially offset by FB buyers.

Platinum Trusted Contributor
elt1
Posts: 5,168
Registered: ‎01-04-2010

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

[ Edited ]

100-200 buyers would overwhelm the local 112 listings for SFH's from $750k--$1.5m. Mv, Cu, Pa, La, Mp, LAH, Pv, Wd, Rc only have 112 active listings in this "affordable" price range. In fact, in that price range, there are less than 200 active listings from SF to Monterey,  if you want high API scores.

 

To find  a large enough pool of affordable "executive" homes with high API scores you have to go out to the tri-valley--one hour commutes to Mp/Pa

Silver Trusted Contributor
nj2bayarea
Posts: 841
Registered: ‎05-11-2009
0

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

Yes, I agree. FB IPO will tank the RE market in Silicon Valley. Stay away from buying!!

Regular Visitor
RobBob
Posts: 5
Registered: ‎02-09-2012
0

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

That number of shareholders might be too high. Remember that Facebook didn't originally want to go public, just that they have to start filing forms anyway four months after reaching 500 shareholders. If they had 500 shareholders in November, how many millionaires will there be? Of course probably many did not excercise their options yet, however rumors are there has been private market buyout of Facebook shares pre-IPO, so some of them could have cashed out already if they had wanted. Additionally these people will be on lockout for a year after the actual IPO date, so any spike will be quite some time from now.

Trusted Contributor
ownerer
Posts: 178
Registered: ‎05-17-2011
0

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

It's not just FB. From San Jose to SF, it's raining money.

The amazing thing is, FB didn't even start here. Z packed up and moved the operation because he knew this was the place to maximize FB's success. Living in SV now is like living in London during Shakespeare or Italy during the renaissance. It's the cultural capital of the world.
Silver Contributor
CrazyMan
Posts: 426
Registered: ‎04-10-2009

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

[ Edited ]

That article has some very compelling "facts" to support its claims. Apparently people are easily persuaded.

 

Yes, living in SV is like living in London or Italy during the renaissance. lol

 

 

 

Gold Regular Contributor
manch
Posts: 2,441
Registered: ‎05-18-2011
0

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update


CrazyMan wrote:

 

Yes, living in SV is like living in London or Italy during the renaissance. lol

  



Why laugh? Aren't you living in SV right now? 

 

If you are into tech, SF Bay Area is the BEST place to be, bar none. That's a fact.

Silver Contributor
4rent
Posts: 541
Registered: ‎01-28-2011
0

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

manch I am not sure why CrazyMan is laughing as well. He owns a house in Santa Cruz but he is renting in SV. That should tell us something.

Regular Contributor
oomerz
Posts: 109
Registered: ‎05-18-2010
0

Re: If Silicon Valley Costs a Lot Now, Wait Until the Facebook Update

Sometimes it helps to keep things in perspective.  I posted this before, but in case some of you haven't seen it or have but forgot:

 

Here are Santa Clara County Census stats, Inflation adjusted to 2009.  Granted, if you wanted to buy in Menlo Park or its immediate surroundings, you would have cause to be concerned that prices will go up (and if you are already there, you may be more concerned that traffic will go up than some property value boost you would only realise if you sold and left the area).  There are more than enough homes to go around though in most of the bay area.

 

median household income   #occupied/total housing units    #owner occupied and median value
1999) $95723              565863/579329                    338661    $574845
2009) $85569              585424/613681                    350525    $704200