Tech IPOs Create Silicon Valley Real Estate Boom: Broker
The surge of tech IPOs are propping up a huge real estate market in Silicon Valley with social media giants bidding on multi-million dollar mansions.
Early Facebook investor and Russian billionaire Yuri Milner recently purchased the most expensive family home in the United States, a massive 25,500 square foot hosue, for $100 million.
"The Silicon Valley market really has come back. We're seeing a lot of upward appreciation, a lot of multiple offers," Ken Deleon, real estate broker at Keller Wiliams and the man behind that Milner sale, told CNBC Friday.
Deleon has sold over $200 million in residental real estate sales just in this year alone.
Silicon Valley is "very distinct" from the rest of the nation, but the good news is people are bullish because of several tech IPOs like LinkedIn and the Facebook IPO coming up next year, he said.
Facebook, the social-networking giant, is one of the most closely watched private companies in the world and could top $100 billion in valuation when it goes public.
Palto Alto has over 12,000 homes in total, with only 50 on the market, Deleon explained.
"These 50 homes are coveted by early executives at Facebook, Twitter, LinkedIn, venture capitalists, and googlers and attorneys who just want to get in before the Facebook IPO."
- Video: See More of Deleon's Comments on Silicon Valley Housing
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