Has The Facebook IPO Flop Hurt Palo Alto and Menlo Park Real Estate? Around Town, posted by Jan H., a resident of the Old Palo Alto neighborhood, on Oct 17, 2012 at 1:08 pm
The local real estate agents say the no, it has not. However, I do no think they are a reliable source. A local builder, architect, and banker say that yes, it has hurt Palo Alto and Menlo Park, because employees were planning to buy local housing with their proceeds, which are considerably less than expected.
Posted by resident, a resident of the Downtown North neighborhood, on Oct 17, 2012 at 1:15 pm
Facebook stock price has gone down, but there are still hundreds of new millionaires working in Menlo Park. Are they going to hold out for higher stock prices? Or buy real estate before interest rates go up?
Posted by Jan H., a resident of the Old Palo Alto neighborhood, on Oct 17, 2012 at 5:30 pm
Inventory is down because it is autumn. But speculation that Facebook Babies would buy here drove prices way up. According to three people I know in different sectors of the housing industry, including financial, there are a lot of unsold houses in PA and Menlo , and they are being price-reduced, because the IPO did not pan out for employees. Only the investors made money. The non-management employees have not even gotten any money yet, yet they will receive far less than they were led to believe.
However, Amy local real estate agents claim they are seeing 5 million dollar houses fly out the window, while homes priced between 1 and 3 million are NOT selling.
Posted by Crescent Park Dad, a resident of the Crescent Park neighborhood, on Oct 18, 2012 at 1:04 pm
The FB IPO is only a flop in the retail stock market. For those investors and employees that were in the company --- hardly a flop at all. Some of those folks have a base price of less than $1.00 per share! So even if the stock dropped to $20, they are so far ahead of the curve it is mind blowing to consider their new found wealth.