Another housing boom is about to be underway!
With more and more tech companies going public and entering the market, it’s almost a guarantee that home sales in surrounding areas will skyrocket.
In other words, it’s an ideal opportunity to buy-in to real estate if making money is your thing.
Here’s everything you need to know if you’re looking to get in on all the action…
Whether you’re tech savvy or not, I’m sure brand names like Uber and Pinterest will ring a bell.
These are the same kind of companies who are starting to make the transition from private to public, a move that’s often referred to as an initial public offering or IPO for short.
As these IPOs surface and take place, investors and consumers alike tend to flock towards nearby real estate locations.
If you’re wondering how two and two go together, it’s because these big-name technology businesses directly affect the value of homes within their general vicinity.
It’s simple. Companies announcing their plans to go public inherently drives more people to buy into the housing market.
The reason being, supply goes up and less competition exists on any given home.
This typically takes about 6 to 9 months after the IPO before it’s in full effect, but once it is, THOUSANDS of buyers could potentially enter the market.
For example, when Facebook went public back in 2012, Menlo Park home values grew more than 20%.
If you do the math, that’s about a $30,000 difference in appreciation within a single year!
It just goes to show that sometimes it pays to wait…
If you’re considering selling your home or buying one with the intent of renting it out later on, you may want to hang tight until these IPOs take place.
The Bay Area housing market will claim the majority of these profits since the overwhelming majority of tech companies happen to be situated there.
But that’s not to say that other real estate opportunities revolving around these public offerings won’t present themselves as well.
As of now, Slack, Pinterest, Uber and Lyft are all making moves to go public in 2019.
If you’re looking for an way to gain the upper hand in terms of buying and selling homes, then make it a point to make the most out of these companies as they move into the public eye or feel free to track down other incoming IPOs as they present themselves.
If any of these companies are situated in your area, it’s pretty much a given that the surrounding real estate will be positively impacted.