Today on “The Real Estate Market Minute,” I’ll be going over why home prices will soon be going up in the San Francisco real estate market.
In 2004, Google went public and created 1,000 new millionaires. The same thing happened when Facebook went public in 2012. In 2019, however, experts are expecting around 5,000 new millionaires to be created. These will come from companies such as Airbnb, Lyft, Pinterest, and Uber.
This influx of millionaires will have an impact on San Francisco real estate. Some will purchase high-end property, but a majority will be purchasing around the $1 million price point. Though there may be properties under this price range right now, there likely won’t be in a few years.
San Francisco prices are already sky-high, but we’re nearing the end of our market peak. Though inventory, days on market, and interest rates have been increasing across the country, these powerful businesses insulate our area from feeling the effects.
How much of this will trickle into the East Bay? Probably not a lot—people there work long hours and are interested in staying close to their area and near their work.
Nothing’s going to happen overnight; investors must own their stock for at least six months before cashing out. Regardless, it’ll be interesting to see what happens over the next year.
If you have any real estate needs, have questions, or would like more information, feel free to reach out to me. I look forward to hearing from you soon.