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I read one theory a while back that suggested that a lot of people in SF are doing exactly this, which may ironically lead to an oversupply of inventory after t

I read one theory a while back that suggested that a lot of people in SF are doing exactly this, which may ironically lead to an oversupply of inventory after the string of IPOs this year and cause house prices to dip.

nlh 8y ago
A LOT of people are talking about and planning on this exact strategy. It’s for that reason that I agree with you - I think it’s going to look a lot like that NYE a year after Uber had the $300 surge price fares and all the drivers started counting all their money in advance - “Oh man I’m gonna make so much when prices shoot up at New Year’s again!” Then of course there was a ton of driver supply and prices didn’t go anywhere. Everyone is talking about the “easy money” of selling a home as soon as “all those new millionaires are willing to pay top dollar for a new home”. The problem with this plan is threefold: First, the basic supply and demand rules. Second, all the people selling homes are going to need to live somewhere else, right? So they too are going to have to pay an inflated price for a new home, which will eliminate any gains (the exception is if you own a home in SF and are planning on either leaving town or majorly downsizing). Third, just because someone is newly wealthy doesn’t mean they suddenly decide that paying 20, 30, 40% more for a home is rational. Many folks will keep renting or stay in their current homes if there’s a sudden rush to buy. I wouldn’t be surprised if prices tick down a bit in 6-12 months from the oversupply before continuing on their regular scheduled steady march upward :)