It’s been deemed the Facebook effect: The term is now being used to describe the electrifying jolt to the Silicon Valley real-estate market that the much-anticipated Facebook initial public offering is predicted to cause.
Apparently, in the valley, homeowners looking to sell are now tightly clutching onto their estates and awaiting buyers made nouveau riche by the public offering.
Fortune reported that the median price of a single-family home in Palo Alto — where Facebook Co-Founder and Chief Executive Officer Mark Zuckerberg resides — increased 11 percent during the first quarter of 2012, while housing inventory shrunk by 57 percent.
Much of what will happen with the IPO is yet to be seen, though, and as Fortune’s David A. Kaplan astutely pointed out, if coffers don’t fill up as much as was hoped for, the real estate market could go bust and not boom.
Recently reported home listings have included a Colonial close to Zuckerberg, sprawling more than 7,000 square feet, for nearly $9 million, and the abode across the street from late Apple Founder Steve Jobs’ family’s home, with an $11.5 million asking price.
Which way do you think the IPO — and housing market — will go?
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