SAN FRANCISCO (KPIX 5) — Is the San Francisco IPO millionaire land rush over-hyped? Not if you talk with local high-end real estate agents.
Uber is expected to make its IPO filing public Thursday and it’s likely to be one of the biggest ever for a tech company. In the wake of the launch of Lyft stock and with several other local IPOs in the wings, San Francisco’s high end real estate market may soon be glowing red hot.
Analysts agree, but say it’s too early to know the magnitude of the IPO effect.
KPIX 5 toured a 5-bedroom, 5.5 bath Telegraph Hill home featuring sweeping views of the Bay and San Francisco landmarks from multiple levels. Located at 233 Chestnut Street, it is on the market for $8.3 million.
It joins an already competitive market in a city where there are roughly 6,500 home sales a year.
Gupta is a developer searching for a home for himself in the $3 million range. He says he’s been outbid three times since December.
Realtor Justin Fichelson says his clients feel an urgency to buy now. Sellers are thinking about holding onto properties to get bigger payouts.
He says the momentum is likely to be steady and subtle.
Chief Market Analyst at Compass Patrick Carlisle says after peaking last spring, the housing market cooled. But the financial markets bounced back this year.
Another factor to keep in mind – most employees have to wait 6 months after an IPO, before they can sell their shares.