San Francisco News
Twitter IPO could increase SF home prices
SAN FRANCISCO (KGO) -- It's been one day after Twitter filed papers for its initial public offering and now there is speculation mounting about what and kind of an effect the influx of new millionaires will have in San Francisco. Realtors say you can expect home prices to go up, especially in and around Noe Valley which is often called the northern tip of Silicon Valley.
The Daileys have been looking for a home in San Francisco for five months. They've made offers but so far, no luck. "It's definitely frustrating. It's hard. There's just so much competition. When you see people spending all cash on a house, that's hard. That's a lot of money for someone to put down," Jesse Dailey said.
Realtors say expect the situation to get even worse for home buyers, now that Twitter is expected to go public. When Facebook went public in May of 2012, many of those new millionaires bought homes in Noe Valley, the Mission, and Liberty Hill. Realtors expect the same thing after Twitter's IPO.
"There's all that pent up demand from all those buyers who haven't been able to purchase and if you add the Twitter people in there, yeah we expect it to drive our real estate market for months if not years to come," realtor Pete Brannigan said.
In one example of how competitive the market is now, a two-unit, 1,500-square foot fixer upper on Liberty Hill was listed last month at $1.4 million. After 11 offers, it sold for $2.2 million -- $800,000 over asking.
At Twitter headquarters on Market St. in San Francisco, employees kept mum about the IPO filing, but in the neighborhoods, reaction is mixed about the anticipated influx of millionaires. The Mission District, for example, has already seen much gentrification.
"It does concern me that the flavor of the neighborhood changes a little bit. I think it changes how people live here see it," resident Cole Kelly said.
"Considering that when I first moved to San Francisco it was experiencing an economic downturn you know in the early 2000's, I would rather see people with money here than people without money here," resident Carmen Martinez said.
More money, more bidding wars -- an all-too familiar theme in San Francisco.
twitter, SEC, IPO, facebook, real estate, housing market, mission district, noe valley, san francisco news, lilian kim
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