The "Facebook" Effect
"Facebook is taking over the world." That's what everybody says. Just back at the beginning of April, Facebook declared that it reaches 200 millions users. Most people wouldn't realized this, but the power of social media seemed put a lot of confidence around Silicon Valley in recent years as well, including local real estates market. An recent article on CNN money pointed out that "the effect of the social network's IPO is an already hyperventilating local real estate market that's now going bonkers." According to Broker Metrics, for the first quarter of 2012, the median price of a single-family Palo Alto home went up 11%, whereas inventory declined 57%.
Residents live in Palo Alto is holding their houses off the market and all gaga over Facebook to see how much their houses are going to be worth. According to a broker in Palo Alto Michael Dreyfus commented, "Every real estate agent in town has a long list of buyers and you can almost feel the preparation for a spring frenzy. The hordes of buyers are going to overwhelm our meager supply."
On a national scale, US home sales are up across the country, and an increasing portion of those sales are from first-time buyer. Read our older post about the national median home price declined by just 0.4% in the three months ended March 31 compared with the same period in 2011.