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It's a bit of deja-vu for those of us who remember the Dot.com boom of yester-decade: Reuters reports that IPO-driven real estate prices are becoming more common with companies like Zynga and Yelp poised to enter IPO status. And when these companies offer employees the chance to cash out before the company goes public, even the rumor of impending IPO is enough to spur optimistic homebuyers, and with them, home prices in sought after neighborhoods. Competitive bidding in these 'hoods has driven prices up 15 percent from last year. The increase correlates with local start-up activity as more successful tech companies are finally setting up shop in the city, rather than Silicon Valley.
Some employees already working for comanies recently made public feel compelled to buy now, before the fresh crop of Zynga/Yelp millionaires enter the competition. Seems these young folks basically all want the same house, in the same place:"a modern, open-plan home in the southern part of town that's convenient to the city's tech hub south of Market Street" and public transportation options.
Meanwhile, sellers in the know are waiting to list. "It seems foolish to put [my house] on the market when there are a thousand people down the street who are about to make a million dollars," said SF homeowner Adam Holm, whose Potrero Hill home is easy walking distance to Zynga's headquarters.
· IPOs Stoke San Francisco Housing Market [Reuters]
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