Bay Area Housing IPO

LeanTaaS ♥️ data
May 12 27 Comments

I am planning to buy a home and was thinking that because of all the IPOs going this year housing market will be worse for buyers next year after the 6 months lockup period.

Any thoughts?

Current TC: $185 base and some paper money.

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TOP 27 Comments
  • Facebook Hodinkee
    Those ipo will have no effect on housing market.
    May 129
    • LeanTaaS ♥️ data
      OP
      Few thousands who became overnight millionaires have no impact?
      May 12
    • Pandora dipthong
      Of course it will have impact. This is liquidity event thousands of people have been waiting for and the first thing they’ll do is buy a house.
      May 12
    • Facebook public2
      Increasing demand while keeping supply constant will have no impact? Tell us more!
      May 12
    • Uber ueue
      True. When FB IPO hit house prices went up maybe 1 percent. No one sensible is going to dump their money into a flat, falling and still overpriced housing market with steadily increasing supply.
      May 12
    • Facebook public2
      The 1% was an estimate for a 10 mile radius around campus, yes not a lot of folks rushed to buy in EPA or Menlo. Sensible folks will absolutely aim to diversify their investments as well as increase their qualify of life by buying a house in a slower but appreciating market with incredible tax benefits:) jokes aside sell some of your uber stock and diversify even if not in real estate.
      May 12
    • How do you know few thousands will be millionaires in 6 months when the lockout ends? That’s when they make purchasing decisions
      May 12
    • Facebook public2
      No one does, my point was just that supply is fixed and demand will increase, by how much no one knows. Will be interesting to see.
      May 12
    • Shouldn’t assume supply is fixed. There is more supply in the market than last year.
      May 12
    • Facebook public2
      Where was more land made or developed?
      May 12
  • Uber / Productchocobears
    There will be little impact for various reasons:
    1) tech employees can already get home loans with minimal down payments
    2) houses are a bad use of capital from an investment perspective
    3) many workers want to leave the bay area
    4) the existing pool of wealth dwarfs this batch of IPO winners
    5) insiders at larger startups have already sold shares on secondary markets to get liquidity
    6) living in the bay kinda sucks
    May 123
    • Uber ueue
      Well said.
      May 12
    • Pandora dipthong
      What is the #1 reason people are not buying houses? They lack the cash for the down payment. All these IPOs will give them that cash. People who want to put down roots in Bay Area > those who do not want to buy in Bay Area.
      May 12
    • Google uzaname
      Agreed. In addition to that many of my Lyft and Uber friends were quite bullish for the IPOs and have actually bought real estate last year given low interest rates (and fear of being outbidded once IPOs take place). If you work for L/U/Pinterest, you would have cash for down payment anyway.
      May 12
  • Oracle / Mgmtaiabc
    House prices will increase and will turn into a sellers market very soon ...
    May 122
    • Apple / EnggtUh6$
      Oh, is it a buyers market now? I didn’t get the memo
      May 12
    • Oracle / Mgmtaiabc
      Sort of ... atleast in certain areas ....
      May 12
  • Glu Mobile PQSK63
    No impact, 1. Not everyone will sell all of their shares, 2. All the seller will want to sell their house before the correction so there will be abundance of supply.

    If anything, housing price will be lower, likely 20% lower especially if trade war do not end soon.
    May 123
  • Oracle alwzangry
    Where did all the people who bought homes around 2012 just for living in them for 5-7 years go? Aren't there more of them than the paper millionaires? Besides, looking at the new IPO performance, there aren't going to be that many millionaires, I think.
    May 121
    • Uber ueue
      Buying now will incur a bunch of paper losses
      May 12
  • Uber Xlqf58
    There will also be more product on the market so it’s hard to say whether demand or supply will come ahead. That being said, I just bought a place because we found our dream home.
    May 121
    • Facebook public2
      Where is there more product? We started making more land?
      May 12
  • GoodRx BobAxelrod
    Who says they all in SF or plan to stay in the area?
    May 120
  • SAP noun1
    No impact...
    May 120

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