Facebook’s New Millionaires, New Money, and New Homes

Facebook has made some serious headlines by finally announcing its plans to go public, creating a completely new generation of millionaires. Everybody is wondering what these brand new millionaires will do with their newfound wealth. We’re wondering how this is going to affect the housing market?

“It will be some time before the first Facebook shares are sold to the public, and even longer before Facebook’s employees are able to turn their paper wealth into cash and officially take their places as the newest members of the 1 percent. But the mere anticipation of the event may pour a little kerosene onto what is already a fairly hot local real estate market,” wrote Michael Cooper for the New York Times.

The real estate market Cooper is referring to is the San Francisco Bay Area, where Facebook’s headquarters is located; where we believe these new money millionaires will be snapping up new homes. New home sellers want to know if they should be listing their homes now or give it some time, new home buyers are worried about prices rising as more buyers could escalate property prices.

Even with the prices of new homes falling at the end of last year in a majority of these areas, that area still has one of the hottest markets in the entire country. The markets could be singing a different tune once Facebook’s new millionaires begin new home hunting. 

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