One recent night, in a packed room with a view of the Bay Bridge and an open bar, real estate investors gathered. Standing at the front presenting was Deniz Kahramaner, a real estate agent specializing in data analytics at Compass.
“Are we going to see a one-bedroom condo that’s worth less than $1 million in five years?” he asked the crowd. “Are we going to see single family homes selling for one to three million?”
No, he said, not anymore. The energy rose as he revealed more data about new millionaires and about just how few new units have been built for them. San Francisco single-family home sale prices could climb to an average of $5 million, he said, to gasps.
As the idea of the coming I.P.O.-palooza took on currency, sellers started pulling their houses off the market. The broader California housing market has softened, and home sales are down, but here’s one fix for that.
“Even if just half the I.P.O.s happen, there’s going to be ten thousand millionaires overnight,” said Herman Chan, a real estate agent with Sotheby’s. “People are like, ‘I’m not going to sell till next year, because there are going to be bajillionaires everywhere left and right.’”