Silicon Valley real estate: The Facebook effect: The pending Facebook IPO is affecting Silicon Valley real estate. Sellers are keeping their homes off the market until the IPO is done and there’s a new batch of buyers, flush with cash.
Though the number of actual prospective home buyers with Facebook connections is only a fraction of all buyers in the Valley, their psychological effect on the market is unmistakable. In Palo Alto, in particular — which Mark Zuckerberg calls home —sellers are either keeping their homes off the market until the IPO or ramping up expectations. For the first quarter of 2012, according to BrokerMetrics, the median price of a single-family P.A. home went up 11%, whereas inventory declined 57%